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- Germany PMI shows a slight loss of momentum in recovery in April
Germany PMI shows a slight loss of momentum in recovery in April
According to the report from IHS Markit, April’s ‘flash’ PMI data showed a slowdown in growth across Germany’s private sector, with services activity stalling and the upturn in manufacturing production partly held back by supply shortages. The pace of job creation nevertheless gathered speed, driven largely by increased efforts by goods producers to expand capacity as well as positive expectations for future activity. April meanwhile saw businesses’ costs rise at the fastest rate for more than a decade amid widespread reports of an imbalance of supply and demand for inputs as well as higher fuel and energy prices. Charges were raised accordingly, albeit with the survey indicating the partial absorption of higher costs by businesses.
The headline Flash Germany PMI Composite Output Index ticked down from a 37-month high of 57.3 in March to 56.0 in April. The survey’s manufacturing output index remained in strong growth territory, at 67.7, but signalled a slight loss of momentum since March (68.9) amid several reports from surveyed firms of supply issues holding back production. Business activity across the service sector meanwhile stalled in April (index at 50.1 from 51.5) as companies cited the impact of the pandemic and stricter lockdown measures.
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