Germany PMI Services was finalized at 60.8 in August, down from July’s record high of 61.8. PMI Composite also dropped to 60.0, down from July’s all-time high of 62.4. Markit said, business activity maintained strong rate of growth.. There was further marked rise in employment as capacity pressures build. Increases in input costs and prices charged were near record.
Phil Smith, Associate Economics Director at IHS Markit said:
“The service sector followed up July’s record performance with another sharp increase in business activity in August, and has taken the mantle from manufacturing as the main driver of growth. Although the rate of expansion on a monthly basis looks like it has passed its peak, the scene is already set for strong growth in the third quarter, even if we were to see a further loss of momentum in September.
“The Delta variant is a risk to service sector demand in the near term. But looking further ahead, businesses remain optimistic that conditions will have improved come this time next year, with many still hoping for an end to the pandemic and an associated recovery in travel activity. The steep rebound in activity and strong business confidence about longer-term prospects continue to help drive a rapid pace of job creation, albeit with the rate of employment growth in August easing from July’s all-time survey high.
“Price pressures remained historically elevated across the service sector in August, adding to even stronger inflation in manufacturing. Large numbers of services firms continued to hike their prices to cover against rising costs, emboldened by rising demand and growing backlogs of work.”
