Germany August flash manufacturing PMI 54.1 vs 52.0 expected
- Prior 52.2
- Services PMI 48.5 vs 50.1 expected
- Prior 49.8
- Composite PMI 51.0 vs 51.3 expected
- Prior 51.3
Comment:
Phil Smith, Economics Associate Director at S&P Global Market Intelligence:
“The recovery in the manufacturing sector has regained momentum, after it showed signs of stalling in the second quarter. Output, new orders and export sales have all risen at their quickest rates since early-2022, which likely reflects some catch-up from the more subdued picture we saw a few months back at the peak of the uncertainty and spike in oil prices associated with the Middle East war, as well as the influence of increased defence spending filtering through. It still remains to be seen if this pace of growth can be sustained, not least in light of ongoing supply risks, but a notable strengthening of manufacturers’ sentiment towards future output suggests that the upturn has legs.
“Although the service sector continues to act as a drag on growth, a second successive slight uptick in new business and a renewed rise in employment in the sector suggest that things could start to get better soon on the activity front. A slower rate of services output price inflation also bodes well for demand in the coming months."
This article was written by Giuseppe Dellamotta at investinglive.com.