- Prior 49.6
- Services PMI 52.7 vs 54.0 expected
- Prior 54.6
- Composite PMI 52.1 vs 53.5 expected
- Prior 53.9
- Full report here
Key Findings:
- Business activity growth softens in November
Comment:
Commenting on the flash PMI data, Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said:
“These figures are a major setback for Germany. In the manufacturing sector, the headline PMI has fallen deeper into
contraction territory and now signals a slowdown in this part of the economy. Although production is slightly higher than in
the previous month, new orders have now declined sharply after broadly stabilising in October. At least there is still growth in
the service sector, but hopes that the rate of expansion would pick up speed here have vanished into thin air with the
marked decline in the index. Overall, the German economy is limping towards marginal growth at best in the fourth quarter.
“Production in the manufacturing sector rose for the ninth month in a row, but momentum has been slowing for two months
now. The slump in new orders, especially from abroad, is also an indication that the final month of the year will more likely
see a downward rather than an upward trend.
“Manufacturing companies are looking to the future with significantly more confidence and expect to have increased their
production in a year’s time. This is likely to be driven by hopes that relatively high growth can be expected in the coming year
in the defence industry and in machinery used for civil engineering infrastructure projects. These are the areas where the
government plans to channel debt-financed funds.
“Growth in the service sector has cooled, but new business has ticked up for the second month running, and hiring
continues, just more cautiously than before
