Germany: Flash PMI in April recedes from eight-month high
April 23, 2015
Markit’s composite Purchasing Managers’ Index (PMI) in April moderated slightly from March’s 55.4, which had marked the highest level since July 2014, to 54.2 in April. As a result, the composite PMI—the result of a survey of over 1,000 manufacturing and service businesses based in Germany—remaines above the 50-threshold, where it has been since April 2013.
April’s slight moderation came of the back of slower output at both service providers and manufacturers. According to Markit, a slower growth in new orders and increased prices were behind the slowdown. The rate of job creation and the amount of work outstanding were broadly the same as in the previous month. Input prices increased for a second straight month and output prices continued to rise. Regarding the manufacturing sector, firms registered small increases in buying activity and stocks of purchases. Service providers remained positive about the 12-months activity outlook.
Markit commented on the result, stating that, “April’s survey data are consistent with further economic growth at the start of the second quarter. However, it will be interesting to see whether weaker new order growth and increased prices will result in a further slowdown of output expansion or whether the German economy will regain momentum in coming months.”