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- Business activity in Germany fell sharply in March - IHS Markit
Business activity in Germany fell sharply in March - IHS Markit
According to the latest 'flash' PMI survey data from IHS Markit, business activity in Germany fell sharply in March, led by a record contraction in the country's service sector.
The headline Flash Germany Composite PMI Output Index plunged from 50.7 in February to 37.2, its lowest since February 2009. The preliminary data were based on responses collected between March 12-23.
The sharp drop in activity in March was driven by the service sector, where businesses highlighted the impact of efforts to contain the spread of the coronavirus disease 2019 (COVID-19). The Flash Germany Services PMI Activity Index came in at 34.5, its lowest since data collection for the service sector started in June 1997.
Data also showed a deepening downturn in the manufacturing sector. Production fell sharply and at the joint-fastest rate since early-2009 (matching the rate of decline seen in July 2012, at the depths of the eurozone debt crisis). The headline Flash Germany Manufacturing PMI sank to 45.7, though it was supported somewhat by a further increase in supplier delivery times - the most marked since July 2018 - and a noticeably slower fall in stocks of purchases, both linked to supply-side disruption.
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