Economic Buzz: German Service Sector Contracts In July

22 Jul 2022 , 02:44 PM

Germanys private sector activity deteriorated more-than-expected in July, and logged the worst performance for over two years amid weaker domestic and export demand, flash survey data from S&P Global showed. The flash composite output index dropped to a 25-month low of 48.0 in July from 51.3 in June. The index was forecast to fall to 50.1. Any reading below 50 indicates contraction, while a score above 50 suggests expansion in the sector. Further, the index declined below 50.0 mark for the first time since December last year. Manufacturing output fell at the sharpest pace since May 2020. Meanwhile, services activity registered a slight fall in July, linked to staff shortages and retrenchment of new business. The services Purchasing Managers Index fell to a seven-month low of 49.2 in July from 52.4 in the prior month. The score was forecast to fall to 51.2. The manufacturing PMI also decreased to a 25-month low of 49.2 in July from 52.0 in June. The expected score was 50.6. Powered by Commodity Insights