Germany: Composite PMI inches up in May
May 25, 2022
The S&P Global Flash Germany Purchasing Managers’ Index (PMI) inched up to 54.6 in May from April’s 54.3 reading. The index moved further above the 50-threshold, signaling a stronger improvement in business conditions from the prior month.
In May, business conditions in the manufacturing sector improved at a faster rate (May: 54.7; April: 54.6). However, services-sector operating conditions improved at a softer rate (May: 56.3; April: 57.6). In the private sector as a whole, new business inflows rose at a reduced rate amid uncertainty among customers due to inflationary forces, supply chain issues and the Covid-19 lockdowns in China. New export orders among manufacturers particularly suffered. However, employment continued to increase robustly, with firms looking to address some capacity constraints: Services firms faced greater outstanding work due to returning demand and supply bottlenecks. Turning to prices, the pace of inflation eased slightly but remained elevated nonetheless. Greater input cost burdens were passed on to the customer.
Author: Jan Lammersen, Economist