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- German private sector output growth slowed for the second month running in July
German private sector output growth slowed for the second month running in July
German private sector output growth slowed for the second month running in July but remained strong overall, according to flash PMI survey data from IHS Markit. The overall rate of expansion was the weakest since January, a trend reflected in both manufacturing output and services business activity. Similarly, new business inflows increased at the softest rate since the start of 2017. That said, job creation quickened during the month and outstanding business continued to grow solidly, reflecting manufacturing backlogs. Moreover, firms remained as optimistic regarding output expectations in July as they had been in June.
The IHS Markit Flash Germany Composite Output Index registered 55.1 in July, down from 56.4 in June and indicating the slowest rate of expansion since January. That said, growth remained strong overall and above the long-run series average. Output has risen continuously since May 2013, the second-longest sequence of growth since the series started in January 1998.
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