Germany: Flash PMI at three-month high in January
January 23, 2015
Markit’s composite Purchasing Managers’ Index (PMI) in January rose to the highest level since October 2014, inching up from December’s 52.0 to 52.6. As a result, the composite PMI—the result of a survey of over 1,000 manufacturing and services businesses based in Germany—moved a bit further above the 50-threshold, where it has remained since April 2013.
January’s slight improvement reflects increases in both the manufacturing and the services segments. According to Markit, new orders returned to growth, activity rose further and output grew at a slightly faster pace than in December. In addition, Markit commented that private sector employment grew despite the introduction of a minimum wage in January, driven by new orders and higher business requirements. Input prices recorded a second consecutive drop due to lower oil and energy prices.