German manufacturing activity grew at the weakest pace in 50-months in January, the latest manufacturing activity report from IHS/Markit research showed this Thursday. German manufacturing purchasing managers index (PMI) slipped into contraction territory and arrived at 49.9 versus 51.3 expected and 51.5 previous.
Meanwhile, while services PMI climbed to a two-month high level of 53.1 as against previous month’s reading of 51.8 and 52.1 anticipated. The IHS Markit Flash Germany Composite Output Index also climbed to 52.1 in January, up from 51.6 in December.
Key comments from Phil Smith, Principal Economist at IHS Markit:
“The Germany PMI (Purchasing Managers’ Index) is produced by IHS Markit and is based on original survey data collected from a representative panel of around 800 companies based in the German manufacturing and service sectors. The flash estimate is based on around 85% of total PMI survey responses each month and is designed to provide an accurate advance indication of the final PMI data.”