Germany PMI Manufacturing rose to 50.0 in July, up from 45.2, better than expectation of 48.3. PMI Services rose to 56.7, up from 47.3, hitting a 30-month high. PMI Composite rose to 55.5, up from 47.0, a 23-month high. It’s also the first expansionary reading since February.
Phil Smith, Associate Director at IHS Markit said: “July’s PMI registered firmly in growth territory and well above expectations, in a clear sign that business conditions are improving across Germany as activity and demand recover. Furthermore, for an economy that is steered so much by exports, it was encouraging to see manufacturers reporting a notable upturn in sales abroad.
“However, one of the main concerns remains the labour market, and the ongoing cuts to manufacturing jobs in particular, with July even seeing a slight acceleration in factory job losses. That said, with backlogs among goods producers stabilising and business confidence continuing to improve, there’s some cause for encouragement that the decline in manufacturing employment will start to ease off in the coming months.”
