Germany: Flash PMI inches down in June; suggests moderation in growth
June 23, 2014
Markit’s preliminary PMI Composite Output Index for Germany fell to 54.2 in June. The result marked a slight moderation compared to the 55.6 recorded in May and was in line with market expectations. The composite PMI—the result of a survey of over 1,000 manufacturing and services businesses based in Germany—has hovered above the 50 threshold since April 2013 and, according to Markit, although the index eased moderately in June, it continues signaling strong expansion in economic activity.
The moderation was mainly due to weaker performance in the services component, which more than offset a small improvement in the manufacturing component. Markit pointed out that business activity in the services sector was slower than in the previous month and that new orders increased at a softer pace in June than in May. In addition, businesses in the services sector registered higher input prices, while output prices fell.
Author: Ricardo Aceves, Senior Economist