Germany: Composite PMI improves in February
The S&P Global Composite Purchasing Managers’ Index (PMI) rose to 51.1 in February from January’s 49.9. February’s result marked the best performance since June 2022. As such, the index rose above the 50.0 no-change threshold, signaling an improvement in private sector operating conditions from the previous month.
The Manufacturing PMI came in at 46.5 in February, down from January’s 47.3. Lastly, the services PMI activity index rose to 51.3 in February (January: 50.7).
The print suggests a less glum economic outlook that had earlier been expected. Business conditions improved for the first time in eight months. Manufacturing output grew for the first time in nine months, and services output grew at the fastest pace in eight months. In addition, new orders in the manufacturing sector contracted at the weakest rate since May and in the services sector they rose for the first time in nine months. Furthermore, employment continued to rise in both sectors. Meanwhile, measured across both sectors, input and output inflation fell. Finally, business sentiment rose in both sectors.