- Prior 49.1
- Services PMI 50.1 vs 50.3 expected
- Prior 50.6
- Composite PMI 50.9 vs 50.2 expected
- Prior 50.6
Comment:
Commenting on the flash PMI data, Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said:
“Germany’s economy has been growing throughout the summer so far, and the pace of expansion has even picked up
slightly. While we’re talking about modest gains here, this trend signals resilience – considering the headwinds like U.S.
tariffs, geopolitical uncertainty, and relatively high long-term interest rates.
“The recovery is being driven primarily by the manufacturing sector, where output has now increased for six consecutive
months, with the latest data showing a noticeable uptick. Particularly encouraging is the surge in new orders, which saw their
strongest growth since March 2022. That said, a certain degree of caution remains among businesses. Stocks of inputs
continue to decline sharply, which aligns with reduced purchasing activity. This suggests companies are still playing it safe.
“In manufacturing, firms have been cutting jobs at a faster pace. That’s clearly bad news for those affected, and it could be
seen as a negative economic signal. But it’s likely part of a broader effort to boost productivity and sharpen competitiveness.
At least in the short term, this seems to be working – output has risen significantly.
“Input prices in manufacturing have fallen, helped by lower oil prices and a relatively strong euro. On the sales side,
manufacturers have passed on some of these cost savings to their customers
