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- German private sector maintains modest pace of output growth in May - IHS Markit
German private sector maintains modest pace of output growth in May - IHS Markit
According to the latest PMI data from IHS Markit, business activity across Germany’s private sector continued to grow at a moderate pace in May.
Flash Germany Composite Output Index – which is based on approximately 85% of usual monthly replies – registered a reading of 52.4, up slightly from 52.2 in April and its highest since February. Other indicators weakened, however, with new orders falling for the fourth time in five months and employment growth easing to its lowest in just over three years in April. On the price front, latest data showed a slowdown in the rates of both input cost and output charge inflation.
The moderate rise in business activity in May was once again driven by the service sector, where output continued to rise at a relatively robust pace, albeit one that was the slowest in four months. Manufacturing output fell for the fourth month in a row, though the rate of decline slowed for the second month running and was the weakest since February.
Despite goods production falling at a slower rate, May saw the Flash Manufacturing PMI tick down slightly from 44.4 in April to 44.3, owing to negative influences from the employment, stocks of purchases and supplier delivery times components. Next to March’s recent low, the latest PMI reading was the second weakest in nearly seven years. Meanwhile, Flash Services PMI Activity Index fell from 55.7 in April to 55.0 (4-month low).
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