Germany PMI

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Germany: Flash PMI moderates slightly in September, but still points to private sector expansion

September 23, 2015

Markit’s composite Purchasing Managers’ Index (PMI) moderated slightly from August’s 55.0 to 54.3 in September. As a result, the composite PMI—the result of a survey of over 1,000 manufacturing and service businesses based in Germany—remains above the 50-threshold, where it has been since April 2013. Markit pointed out that the average for the third quarter was the best since Q3 of last year.

August’s minor weakening came on the back of slow output growth at both manufacturers and service providers. In contrast, new orders increased at the fastest rate since November 2013 amid a strong economic environment and domestic demand. Manufacturers reported a second straight monthly rise in new export orders. Employment in the private sector increased again in September, with job gains at the highest level since December 2011. Business outstanding was also up in September due to increased new orders and capacity pressures. Regarding price developments, input costs rose only marginally as energy and raw material prices remain low.

Markit commented on the result, stating that, “German private sector companies remained in expansion mode at the end of the third quarter, as highlighted by a further increase in output. Despite slowing slightly since August, the rate of growth was healthy overall and indicative of a further rise in gross domestic product in Q3.”

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 2.5% in 2015, which is unchanged from last month’s forecast. For 2016, panelists expect fixed investment to grow 3.5%.


Author: Teresa Kersting, Economist

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Germany PMI September 2015

Note: Markit Purchasing Managers’ Index (PMI) Composite Output. A reading above 50 indicates an expansion in business activity while a value below 50 points to a contraction.
Source: BME and Markit.


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