Germany: Composite PMI strengthens in August
August 23, 2017
The Markit Flash Composite Purchasing Managers’ Index (PMI) rose to 55.7 in August, up from 54.7 in July. 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 August, output and new orders accelerated sharply. New export orders followed a similar trend, expanding at the fastest pace in over seven years, thanks to strong demand from Asia. Employment also continued to rise strongly, albeit at a slightly softer pace than in July , against a background of growing backlogs of work. Input prices rose at a faster pace, on the back of higher commodity prices. Output price inflation followed the same path.
IHS Markit commented that the increase indicates that “underlying economic growth remains strong following a slight correction at the start of the third quarter”.
Author: Christopher Mc Innes, Economist