German business activity grew at the weakest pace in thirty-three months this month, the latest manufacturing activity report from IHS/Markit research showed.
German manufacturing purchasing managers index (PMI) dropped in December, arriving at 51.5 while services PMI fell to seven-month lows of 52.5 versus 53.3 last.
The IHS Markit Flash Germany Composite Output Index hit forty-eight-month lows at 52.2 in December, from November’s 52.3.
Key comments from Phil Smith, Principal Economist at IHS Markit:
“The PMI data disappointed again in December, indicating the continuation of only a modest rate of underlying growth across Germany’s private sector. Furthermore, with new orders close to stalling in December and firms reporting reduced optimism towards the outlook, there’s a lack of momentum heading into the New Year.”
“It’s a stark contrast from the situation this time last year. Reports of an economy close to overheating have been supplanted by concerns about an increasingly uncertain political backdrop, trade wars and a struggling autos industry.”
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