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- German services sector’s activity expands less than forecast in June
German services sector’s activity expands less than forecast in June
The
report from IHS Markit revealed on Monday that the activity in Germany’s
services sector expanded at the fastest pace in more than a decade in June amid the
further easing of coronavirus containment measures.
According
to the report, the headline seasonally adjusted IHS Markit Germany Services PMI
Business Activity Index came in at 57.5 in June, up from 52.8 in May, but
marginally down from the flash estimate of 58.1. This, however, still was the
highest reading since March 2011. Economists had expected the reading to be
unrevised at 58.1.
According
to the report, the new business saw a sharp increase, while the expectations for
the year ahead improved markedly, with both helping drive a pick-up in job creation.
The upturn in activity coincided with further growth in inflationary
pressures: the rate of input cost inflation faced by service firms to the
quickest in the series history since 1997, while output prices also displayed a
record rate of inflation.
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