Germany: Composite PMI rises to over six year high
September 22, 2017
The Markit Flash Composite Purchasing Managers’ Index (PMI) rose to an over six year high of 57.8 in September, up from 55.8 in August. 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 rise was driven by stronger manufacturing and services PMI readings. In September, output and new orders accelerated sharply, as did new export orders. As a result, employment continued to rise robustly. Backlogs of work also rose strongly. Regarding prices, input costs rose at the fastest pace in five months, which manufacturers have largely passed on to customers.
IHS Markit commented that the increase indicates that “Germany’s private sector economy in rude health, highlighting strong broad-based growth in both business activity and employment.”
Author: Christopher Mc Innes, Economist