PMI: tyske erhvervsliv viser fortsat svækkelse i december

PMI for Tyskland for december

Private sector output growth in Germany slowed further in December, as highlighted by the seasonally adjusted Markit Flash Germany Composite Output Index dropping from November’s 51.7 to 51.4. The latest expansion was the weakest in one-and-a-half years, with some companies commenting on lower order intakes and recent airline and rail strikes. While service sector business activity increased at the slowest pace since July of last year, manufacturers reported an acceleration in output growth, with the rate of expansion the strongest in two months. German private sector companies meanwhile signalled a second successive monthly fall in new business in December. The rate of contraction accelerated since November, but remained modest overall. Sector data suggested that a mild rise in new work placed with manufacturers (from both domestic and foreign markets) was more than offset by a decline at service providers. Panellists partly attributed lower demand to a lack of investments and increased competition. Employment levels increased further in December, but the rate of job creation slowed slightly to the weakest in four months. Anecdotal evidence suggested that companies hired additional workers in order to meet business requirements. December data signalled ongoing spare capacity in Germany’s private sector, with backlogs of work falling for the eighth month running. The reduction of unfinished work was largely attributed by panel members to lower order intakes