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- Germany business activity remains subdued despite easing drag from manufacturing
Germany business activity remains subdued despite easing drag from manufacturing
Latest PMI data from IHS Markit pointed to sustained weakness in the underlying trend in German business activity during November. The Flash Germany Composite Output Index – which is based on approximately 85% of usual monthly replies – registered 49.2 in November, edging up for the second month running and from 48.9 in October, but still one of the lowest readings over the past six-and-half years. Elsewhere, employment levels steadied after falling in October, while expectations towards output edged back into positive territory. Manufacturing remained the main area of weakness in November. That said, the sector’s drag on overall output continued to ease as the rate of decline in factory production slowed for the second month running to the weakest since August. Germany Manufacturing PMI ticking up from 42.1 in October to a five-month high of 43.8.
Growth of services business activity meanwhile remained subdued. The increase in services output in November was in fact the weakest since September 2016 (Germany Services PMI Activity Index fell to 51.3 from 51.6 in October). Weighing on business activity in November was a fifth straight monthly decrease in total new orders.
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