Germany August private sector growth quickens more than estimated

Activity in the German private sector economy increased for the fourth successive month in August, and to a larger extent than estimated earlier, final data from a survey conducted jointly by Markit Economics and BME showed Wednesday.

The seasonally adjusted composite output index, a measure of activity in the manufacturing sector and the service sector, rose to a seven-month high 53.5 in August from 52.1 in July. The preliminary estimates were for a score of 53.4. The index has now stayed above the no-change 50 mark - which separates growth from contraction - for the fourth month in a row.

At the same time, the business activity index for the service sector advanced to a 6-month high of 52.8 in August from 51.3 in July. The index was estimated to rise to 52.4.

The improvement in service sector business activity were driven by a further growth in new work during August, which rose at the fastest pace since January. Responding to the increase in activity, service providers raised their workforces for a second successive month, though at a slower rate than in July.

Average input prices faced by German service providers increased sharply in August amid higher energy bills and fuel prices. Meanwhile, output prices increased only moderately and at a slower pace than in the previous month.