In June, German PMI Manufacturing rose to 45.4, up from 44.3 and beat expectation of 44.6. But it’s staying well below 50. PMI Services, rose to 55.6, up from 55.4 and beat expectation of 55.3. PMI Composite was unchanged at 52.6.
Commenting on the flash PMI data, Trevor Balchin, Economics Director at IHS Markit said:
“The June PMI confirms that German growth has stabilised at a moderate pace in the second quarter. The Composite Output Index trended at 52.5 over Q2, just above the prints for the previous two quarters.
“Service sector growth remains above-trend and although the manufacturing downturn continued into June, there are tentative signs that the worst has passed with the key indices for output, new orders, exports and employment all above their recent multi-year lows.
“The longer-term outlook for the German private sector remains weak, however. The Future Output Index fell to a 56-month low in June as a result of weaker sentiment among service providers. Manufacturers currently expect broadly no change in output over the next 12 months, although this represents an improvement compared with the pessimism of recent months.”
