German manufacturing activity improved in the month of June, the latest manufacturing activity report from IHS/Markit research showed this Friday.
The German manufacturing purchasing managers index (PMI) arrived at 45.4 (4-month highs) versus 44.5 expected and 44.3 previous. Meanwhile, services PMI hit a two-month high level of 55.6 as against previous months reading of 55.4 and 55.4 anticipated.
The IHS Markit Flash Germany Composite Output Index came in at 52.6 in June, unchanged from that booked in May and bettered 52.5 expectations.
Key comments from Trevor Balchin, Economics Director at IHS Markit:
“The June PMI confirms that German growth has stabilized at a moderate pace in the second quarter. The Composite Output Index trended at 52.5 over Q2, just above the prints for the previous two quarters.”
“Service sector growth remains above-trend and although the manufacturing downturn continued into June, there are tentative signs that the worst has passed with the key indices for output, new orders, exports and employment all above their recent multi-year lows.”
“The longer-term outlook for the German private sector remains weak, however. The Future Output Index fell to a 56-month low in June as a result of weaker sentiment among service providers. Manufacturers currently expect broadly no change in output over the next 12 months, although this represents an improvement compared with the pessimism of recent months.”
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