Brandenburg Gate in Berlin, Germany

Germany PMI July 2022

Germany: Composite PMI records worst reading since June 2020 in July

The S&P Global Composite Purchasing Managers’ Index (PMI) came in at 48.0 in July, down from June’s 51.3. July’s result marked the weakest reading since June 2020. As a result, the index dropped below the 50.0 no-change threshold, signaling a deterioration in business conditions from the previous month.

The headline deterioration was driven by a broad-based worsening of operating conditions partly on the back of the fallout from the war in Ukraine: The Manufacturing PMI came in at 49.2 in July, down from June’s 52, while the services PMI activity index fell to 49.2 in July (June: 52.4). Greater economic headwinds amid elevated inflation, the energy crisis and supply-chain issues weighed on demand, both domestic and foreign. Nonetheless, employment continued to increase; however, the tight labor market is likely beginning to affect the services sector as firms reported staff shortages. Turning to prices, input prices remained elevated due to greater commodity prices, a weaker euro and rising interest rates as well as a greater wage bill. Consequently, output price inflation remained elevated despite the rate of increase dropping to a five-month low.

Paul Smith, economics director at S&P Global Market Intelligence, commented:

“Having enjoyed a growth boost from the previous easing of virus-related restrictions, a collision of various headwinds in July served to push the German economy into contraction territory for the first time in 2022 so far.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest