- Prior 50.3
- Services PMI 49.6 vs 49.0 expected
- Prior 48.6
- Composite PMI 51.2 vs 49.8 expected
- Prior 49.5
Key findings:
German PMI climbs back into growth territory in July, driven by expansion in manufacturing production
Comment:
Phil Smith, Economics Associate Director at S&P Global Market Intelligence:
“The German economy made a positive start to the third quarter, with the Composite PMI returning to growth territory after having signalled a three-month spell of contraction following the outbreak of war in the Middle East. However, given the escalating hostilities in the region in the past week or so, which have put renewed upward pressure on global energy prices, the path to a sustainable recovery still seems very much uncertain.
“Manufacturing enjoyed a bumper month of production growth in July, recording its strongest rise in output in nearly four-and-a-half years. The sector was supported by increased new orders, particularly from abroad, with a slowdown in cost inflation perhaps providing some reprieve too.
“For services, business activity is at least showing signs of stabilising, helped by a first rise in demand in the sector for five months and improved confidence across the economy. However, services firms faced stronger cost pressures in July, likely partly due to the expiry of the temporary tax reduction on fuel. With oil prices on the rise again, it looks like we could be set for a period of renewed inflationary pressures.”
This article was written by Giuseppe Dellamotta at investinglive.com.