Economic Buzz: Germany PMI Composite Output Index At 47.6 In August

23 Aug 2022 , 02:56 PM

The headline S&P Global Flash Germany PMI Composite Output Index dropped further into sub-50 contraction territory in August, down from 48.1 in July to 47.6. This pointed to the fastest fall in business activity since June 2020. The result reflected a deepening decline in service sector activity (index at an 18-month low of 48.2 from 49.7 in July), alongside a continued (albeit slightly slower) reduction in manufacturing production volumes (index up from 45.0 to 46.4). Business activity across Germanys private sector economy fell for the second month running and at a faster rate in August, latest flash PMI data from S&P Global showed. The deepening downturn was linked by surveyed businesses to a combination of factors that included uncertainty, high inflation and rising interest rates, all of which weighed notably on demand. Firms expectations meanwhile ticked up from Julys recent low, amid a further easing of rates of increase in businesses costs and output prices, although confidence remained historically subdued. Powered by Commodity Insights