Germany: Composite PMI moderates in July
July 24, 2017
The Markit Flash Composite Purchasing Managers’ Index (PMI) fell to 55.1 in July, down from 56.4 in June. The PMI—the result of a survey of over 1,000 manufacturing and service businesses based in Germany—has remained above 50, the threshold indicating expansion, since April 2013.
The drop was driven by weaker manufacturing and services PMI readings. In July, output and new orders slowed marginally but remained healthy. New export orders, on the other hand, accelerated in July, thanks to high demand in Europe and Asia. Employment followed a similar trend, especially against a background of continuously growing backlogs of work. Input prices rose at a faster pace, on the back of higher commodity prices. Output price inflation, however, moderated somewhat.
IHS Markit commented that, “the flash PMI signalled a further easing in the pace of German economic expansion entering the second half of 2017. (…) That said, the overall picture is one of strong underlying growth.”
Author: Christopher Mc Innes, Economist