Germany: Flash PMI rises in July, suggests improvement in growth
July 24, 2014
Markit’s preliminary PMI Composite Output Index for Germany rose to 55.9 in July. The result marked an improvement compared to the revised 54.0 in June (previously reported: 54.2) and overshot the 54.3 the market had expected. 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.
According to Markit, the improvement in July was due to stronger performance in the services component, which hit a 37-month high. The manufacturing component also improved over the previous month, albeit moderately. Markit highlighted that, “following the joy of lifting the football World Cup trophy, July’s flash PMI results provide further positive news for Germany.” Markit concluded that growth in the German economy has “re-accelerated.”
Author: Ricardo Aceves, Senior Economist