- Prior54.6
- Final Composite PMI 52.4 vs 52.1 prelim
- Prior 53.9
Key findings:
- Further, albeit slower, increases in new work and employment
Comment:
Commenting on the PMI data, Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said:
“The service sector is likely to keep Germany’s growth just above zero in the fourth quarter. However, momentum in this
sector slowed in November. One reason for this is likely to be that the consumption-sensitive service sector is suffering from
the cautious spending behaviour of households. The fact that the recession in the manufacturing sector deepened again in
November, as signalled by the PMI, thereby also affecting industry-related service companies, is not helpful either.
Conversely, however, it can also be said that service providers are proving to be relatively resilient in the face of the difficult
environment.
“The continued growth in new business suggests that business activity in the service sector will also grow in the last month
of the year. For the coming year, the expansionary fiscal policy, which is also likely to be accompanied by higher investment
volumes, should have positive spillover effects on the service sector. The very modest growth of this sector this year,
estimated at 0.4 percent, based on official figures for the first three quarters of the year, should therefore accelerate
significantly to over 1 percent in the coming year.
“On the price front, the good news is that cost inflation among service providers has eased somewhat. However, companies
were obviously forced to pass on the lower inflationary pressure to their customers, as sales prices also rose at a slower
rate
