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- Germany manufacturing PMI unexpectedly fell in July
Germany manufacturing PMI unexpectedly fell in July
According to the flash data from IHS Markit, growth of German business activity slowed in July as the country’s manufacturers recorded their worst monthly performance in seven years.
Germany Composite Output Index– which is based on approximately 85% of usual monthly replies – fell to 51.4 in July. This was down from 52.6 in June and its joint-lowest reading in over six years.
Job creation meanwhile slowed to its weakest since April 2015 as firms reported an accelerated rate of reduction in backlogs and lower confidence towards future output.
Manufacturing output fell sharply in July, registering its steepest drop since March and one of the most marked contractions since 2009. With new orders, employment and stocks of purchases also falling more quickly, the headline Germany Manufacturing PMI registered a seven year low of 43.1, down from 45.0 in June. However, latest data continued to show resilience in the service sector, which saw a further marked increase in business activity during the month, supported by firm domestic demand.
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