Germany PMI March 2017


Germany: Composite PMI rises to nearly six-year high in March

March 24, 2017

The Markit Flash Composite Purchasing Managers’ Index (PMI) rose to 57.0 in March, up from 56.1 in February and the highest mark in almost 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 surge was driven by stronger PMI readings for services and manufacturing, the latter coming in at an almost six-year high. In March, output and new orders continued to grow. New export orders grew at the fastest pace since April 2011, while backlogs of work increased for a tenth consecutive month. As a result, German companies continued to hire new workers at a fast rate. Input prices increased for the seventh month running, principally as a result of higher commodity prices and a strong dollar. Output prices also increased, reaching an almost six-year high as producers passed on higher input prices to customers.

IHS Markit commented that, “the March flash PMI results rounded off a strong first quarter for the Germany economy, which enters the spring growing at the fastest rate in nearly six years […].The PMI data strongly suggest that economic growth will accelerate in the first quarter.”

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 1.9% in 2017, which is unchanged from last month’s forecast. For 2018, panelists expect fixed investment to grow 3.0%.

Author:, Economist

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Germany PMI Chart

Germany PMI March 2017

Note: Markit Purchasing Managers’ Index (PMI) Composite Output. A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: IHS Markit.

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