Economic Buzz: Germanys Services Sector Falls Into Contraction

3 Aug 2022 , 02:51 PM

A sequence of growth in Germanys service sector stretching back to January came to an end in July as business activity fell slightly during the month, reflecting a combination of waning client confidence and a squeeze on both household and company finances, latest PMI data showed. Concerns about high inflation and rising interest rates were meanwhile compounded by the prospect of a gas shortage, leading service providers expectations to turn negative for the first time since the first wave of COVID-19 over two years ago. Having signaled growth throughout the first half of the year as activity rebounded in line with the gradual lifting of pandemic restrictions, the seasonally adjusted headline S&P Global Germany Services PMI dipped back into sub-50 contraction territory in July. At 49.7, down from Junes 52.4, the latest reading was close to the 50.0 no-change mark and thereby indicative of only a marginal decline in activity. Powered by Commodity Insights