Germany: Flash PMI picks up in June
June 23, 2015
Markit’s composite Purchasing Managers’ Index (PMI) in June rose from May’s five-month-low of 52.6 to 54.0. As a result, the composite PMI—the result of a survey of over 1,000 manufacturing and service businesses based in Germany—moved further above the 50-threshold, where it has been since April 2013.
June’s improvement came on the back of higher output at both service providers and manufacturers. According to Markit, private sector output growth strengthened in June. Conversely, new orders grew at a slower pace, mainly due to softer growth at service providers. While payrolls continued to rise in June, the pace of job creation softened slightly. Input costs rose for a fourth consecutive month and output prices also continued to rise, albeit at a slower rate than in the previous month.
Markit commented on the result, stating that, “the latest flash PMI readings paint a mixed picture of the health of Germany’s private sector economy. While companies reported that output rose at a stronger rate than in May, the latest increases in new business and employment were only slight and suggest that activity growth may slow again in coming months. Moreover, the survey data for the second quarter signal it is unlikely GDP growth has picked up since the first quarter.”