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- Germany’s services sector expands at faster pace in August
Germany’s services sector expands at faster pace in August
The report from
IHS Markit revealed on Wednesday that activity in Germany’s services sector expanded
in August at a faster pace than in July.
According to
the report, the headline
seasonally adjusted IHS Markit Germany Services PMI Business Activity Index came
in at 54.8 in August, up from July's six-month low of 54.5 and compared with a
historical series average of 53.3.
Though overall
business activity remained solid, there were signs of underlying demand
becoming increasingly fragile, the report noted. Total volumes of new business
across the service sector rose only modestly and at the weakest rate since
January. In addition, the expectations for future activity reached the lowest
since October 2014 and was only just inside the positive territory. On the price front, input prices
increased steeply and at a rate that was little-changed from the month before. Average
prices charged were raised accordingly, with the rate of inflation likewise
broadly in line with that recorded in the previous survey period and above the
historical average.
Germany
Composite Output Index, a weighted average of the Manufacturing Output Index
and the Services Business Activity Index, tick up to 51.7 in August from July's
50.9, supported by the combination of marginally faster service sector business
activity growth and a slower decline in manufacturing production. Nevertheless,
the latest reading was still one of the lowest seen over the past six years.
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