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- Final German services PMI significantly lower in August
Final German services PMI significantly lower in August
According to markiteconomics, August data pointed to a growth slowdown in Germany's service sector, with new business and activity rising at the weakest rates in more than one and three years, respectively. Moreover, confidence towards the year ahead reached its lowest level since last October. Sharply rising employment levels helped alleviate pressure on operating capacity, with backlogs of work declining for the second month running.
The final seasonally adjusted Markit Germany Services PMI Business Activity Index fell from July's 54.4 to 51.7 in August. Although still signalling growth of output, the rate of expansion was the weakest since mid-2013 and below the long-run series average (53.1). Meanwhile, sector data suggested that activity growth remained particularly strong at Hotels & Restaurants and Financial Intermediation companies, while firms in the Transport & Storage category reported a fall. The slowdown in the service sector impacted overall growth in Germany during August, with the final Markit Germany Composite Output Index - which measures the combined output of the manufacturing and service sectors - falling from July's 55.3 to a 15-month low of 53.3.
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