Germany: Flash PMI rises to eight-month high in March
March 24, 2015
Markit’s composite Purchasing Managers’ Index (PMI) in March rose to the highest level since July 2014, increasing from February’s 53.8 to 55.3. As a result, the composite PMI—the result of a survey of over 1,000 manufacturing and service businesses based in Germany—moved a bit further above the 50-threshold, where it has remained since April 2013.
March’s improvement reflects increases in both the services and the manufacturing segment. According to Markit, March’s print largely reflects faster growth of output, new orders, new export business and investment. In addition, private sector employment and work outstanding both increased and business expectations at service providers remained positive. In March, input costs rose for the first time in four months, resulting from the weaker euro and the introduction of the national minimum wage in January, and companies increased output charges.
Markit commented on the result, stating that, “[i]t looks like the German economy is entering the economic fast lane again, with survey data suggesting that we should expect another quarter of solid GDP growth.”