Germany PMI Services was finalized at 55.8 in February, up from January’s 52.2. PMI Composite was finalized at 55.6, up from January’s 53.8. That’s also the highest level since last August.
Phil Smith, Economics Associate Director at IHS Markit:
“February’s PMI data showed Germany’s service sector recovering further from its slump at the end of last year, aided by an initial lifting of some restrictions and a strengthening of demand as the roadmap for the further easing of containment measures was laid out.
“Another strong round of job creation across the services economy contributed to a further improvement in the overall labour market in February, and was consistent with hopes of a continued pick-up in activity in the months ahead as the pandemic’s influence wanes. However, the survey captured the mood before the escalation of the Ukraine-Russia tensions into a conflict, which brings with it downside risks to the growth outlook.
“Inflationary pressures continue to run uncomfortably high, with the combination of the release of pent-up demand and sharply rising costs leading to a near record increase in prices charged across the service sector in February. Given the recent developments in energy prices and the threat of fresh supply disruptions, inflation looks set to stay higher for longer.”
