Germany: Composite PMI moderates in June
June 23, 2017
The Markit Flash Composite Purchasing Managers’ Index (PMI) fell to 56.1 in June, down from 57.4 in May, which had marked the highest reading in over six years. 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 June, output and new orders slowed marginally but remained healthy. New export orders also experienced a similar trend, as did employment. At the same time, backlogs of work rose at a faster pace. Both input and output price inflation continued to ease.
IHS Markit commented that, “the headline output index for Germany declined for the second time in three months during June, according to the flash estimate, but nevertheless remained at a level indicative of strong economic growth.”
Author: Christopher Mc Innes, Economist