Brandenburg Gate in Berlin, Germany

Germany PMI November 2019

Germany: German private sector activity remains mired in contraction in November

The German private sector continued cruising at two speeds in November, as the composite Purchasing Managers’ Index (PMI) which is produced by IHS Markit rose from a revised 48.9 in October (previously reported: 48.6) to 49.2 in November. However, the headline index remained south of the neutral 50-threshold that separates contraction from expansion in the private sector for the third consecutive month and showed diverging, underlying trends.

The manufacturing sector continued to be the main drag on private-sector activity as the data points to an ongoing recession in the goods-producing sector. New orders decreased again, although at the weakest pace in nearly a year, while new exports also fell at a softer rate. On the other hand, service sector activity continued expanding in November, albeit at a more subdued over-three-year low soft pace. This came on the back of weaker inflows of new work. However, as demand dynamics remained weak, backlogs of work fell for the 13th month running. In terms of employment, job creation slowed to an over-three-year low in the services sector; however, this largely offset further redundancies in the manufacturing sector.

Business confidence, meanwhile, improved somewhat in November as firms raised their output expectations amid renewed optimism. Meanwhile, output and input prices among service providers rose whereas both prices fell among goods producers. The former came on the back of wage gains while the latter resulted from cheaper raw materials amid falling demand.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest