Germany PMI Manufacturing dropped to 43.4 in December, down from 44.1, missed expectation of 44.5. PMI Services rose to 52.0, up from 51.7, matched expectations. PMI Composite was unchanged at 49.4.
Commenting on the flash PMI data, Phil Smith, Principal Economist at IHS Markit said:
“With the headline composite PMI holding steady at 49.4 in December, the flash data point to a weak end to a difficult year for the German economy.
“Manufacturing continues to weigh heavily on private sector output, with faster decreases in factory production and employment in December causing the manufacturing PMI to tick down for the first time in three months. Easing rates of decline in new orders and exports continue to provide glimmers of hope, however.
“The service sector remains resilient, with business activity rising at a stronger pace and business confidence perking up as well, though weak labour market trends are likely to be a restricting factor for the sector as we head into the new year.”
