Germany's composite PMI rises in July

Mittwoch, 05. August 2020 09:55

The Composite Output Index for Germany rose to 55.3 in July, back in the growth territory the first time since February, IHS Markit reported in its flash estimate on Wednesday.

Supporting growth in business activity in July was a pick-up in demand, with inflows of new work rising markedly. The manufacturing sector experienced stronger increases. However, despite the increased activity, pressure on capacity generally remained low, with employment decreasing for the fifth straight month.

"The PMI data for Germany so far point to a broadbased rebound in activity as the country emerges from an unprecedented downturn, with the service sector joining manufacturing back in growth territory and even expanding at the slightly quicker rate in July," principal economist at IHS Phill Smith said in the press release. "Following the record 10.1% collapse in economic output in the second quarter, we expect GDP to rebound around 6% in the third quarter, but not get back to pre-crisis levels until 2022."

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Breaking the News / MD