Germany's Composite PMI climbs to 57.3 in March

Wednesday, 07. April 2021 09:55

German private sector activity improved significantly further in March, with the Composite PMI Output Index jumping 6.2 points to 57.3, IHS Markit said on Wednesday.

The services sector saw growth for the first time in six months, prompted by the easing of coronavirus restrictions and recovering customer confidence. The PMI advanced from February's 45.7 to 51.5. Underlying demand remained subdued but showed signs of improvement, with new work falling at the slowest pace in the half-year period. Optimism among survey participants was the highest since March 2018, prompting increases in employment despite reportedly an increase in business costs.

"March saw tentative signs of an upturn in activity across the German service sector, with some businesses having opened their doors to customers for first time in months as lockdown restrictions were eased," IHS's Phil Smith said in the press release. He noted that "survey [is] showing growing cost pressures at services firms due to rising energy and fuel prices" and the third COVID-19 wave is putting the service sector's "immediate prospects" at a risk.

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