Economic Buzz: German Services PMI At 47.7 In August

5 Sep 2022 , 03:58 PM

The seasonally adjusted headline S&P Global Germany Services PMI registered 47.7 in August. This was the second successive reading below the 50.0 no-change threshold, following a figure of 49.7 in July. The result pointed to an acceleration in the rate of contraction, to the quickest since February 2021. Germanys services firms saw activity levels fall for the second month running and at a faster rate in August, as a continued squeeze on client budgets and economic uncertainty dampened demand across the sector. Although firms continued to take on new staff to address capacity constraints, employment growth lost momentum and was the weakest for a year-and-a-half. The S&P Global Germany Composite PMI Output Index moved further into sub-50 contraction territory in August, dropping from Julys 48.1 to a 27-month low of 46.9. Powered by Commodity Insights