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- German economy shows ongoing resilience in December - IHS Markit
German economy shows ongoing resilience in December - IHS Markit
According to the report from IHS Markit, December’s ‘flash’ PMI survey pointed to ongoing resilience in the German economy, with strength in manufacturing continuing to offset service sector weakness. The survey meanwhile pointed to a minor setback in private sector employment, though firms remained optimistic about the year-ahead outlook. Elsewhere, there were signs of increasing supply chain pressures driving a sharp rise in manufacturing input costs.
The headline Flash Germany Composite Output Index registered 52.5 in December. This was up slightly from October’s five-month low of 51.7, with the survey indicating a reduced drag from falling service sector activity (index at 47.7 up from 46.0). Manufacturing production meanwhile continued to exhibit strong growth, albeit with a dip in the respective output index from 62.2 to 61.4 signalling a further slight loss of momentum. Coronavirus disease 2019 (COVID-19) lockdown measures, including the closure of the hospitality and leisure industries and travel restrictions, continued to weigh on service sector activity in December. Manufacturing output, by contrast, showed little impact from the virus containment measures at home or abroad, with panellists often attributing growth to a sustained rise in demand.
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