Germany: Flash PMI rises to seven-month high in February
February 20, 2015
Markit’s composite Purchasing Managers’ Index (PMI) in February rose to the highest level since July 2014, edging up from January’s 53.5 to 54.3. 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.
February’s improvement reflects increases in the services segment whereas the manufacturing segment remained unchanged compared to last month. According to Markit, the reading mainly resulted from strong order intakes and a positive economic environment. While activity growth rose for service providers, it decelerated slightly for manufacturers. Private sector employment grew for a 16th straight month and the amount of work outstanding increased for the first time in 10 months. While the weak oil price translated into a third consecutive drop in input prices, prices charged for goods and services recorded the largest gain in eight months.
Markit commented on the result, stating that, “[p]rospects in Germany’s private sector continued to brighten in February […], improving economic conditions and an understrength euro led to a second successive monthly rise in new orders.” And, it added that, “[w]hile low oil prices, a weaker euro and ECB quantitative easing should help boost economic growth, some uncertainties remain, including the debt crisis in Greece.”