Germany: Flash PMI rises in July
July 22, 2016
Markit’s composite Purchasing Managers’ Index (PMI) rose from 54.1 to 55.3 in July, its highest level since December 2015. The PMI—the result of a survey of over 1,000 manufacturing and service businesses based in Germany—has remained above 50, the threshold indicating expansion, since April 2013.
The print reflected a higher PMI reading for service providers, but the manufacturing PMI dropped due to slower growth in new orders and employment. The overall rise in the composite PMI, however, was partly driven by an increase in export orders and strong job creation. As for price developments, input costs rose in both services and manufacturing.
Markit commented on the result, stating that, “the German economy is continuing its uninterrupted growth trend at the start of the second half of 2016, with the headline PMI figure reaching its highest level since the end of last year. Strong tailwinds from a healthy labour market and rising demand are propelling the economy forward, while businesses so far seem to be unaffected by uncertainties around the UK’s decision to leave the EU.”
Author: Christopher Mc Innes, Economist