Prior 49.1Services PMI 53.4 vs 52.4 expectedPrior 52.4Composite PMI 53.1 vs 52.3 expectedPrior 52.1<\/p>\n
Key Points:<\/p>\n
Business activity growth ticks up to four-month high in February<\/p>\n
Comment:<\/p>\n
Commenting on the flash PMI data, Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said:\n<\/p>\n
\u201cHurray, German industry is growing again. For the first time in more than three-and-a-half years, the headline
\nmanufacturing PMI is back in expansionary territory. This confirms the tentative signs of an economic turnaround that were
\nparticularly evident in January. It is particularly encouraging that new orders have risen robustly, suggesting that production
\ngrowth will continue in the coming months. This view is supported by order backlogs, which have risen for the first time since
\nmid-2022, albeit only moderately. Higher new orders from abroad, which have risen again after six months of decline, have
\nalso helped here. We expect the government’s infrastructure program and higher military spending to provide increasing
\ntailwinds for industry.\n<\/p>\n
\u201cThe development in the service sector is encouraging. Here, business activity growth has picked up significantly, reaching
\nits second-highest level in almost two years. The weaker growth in new business compared to previous months may be an
\nindication that the pace of expansion will not remain at this level in the coming months. In fact, companies remain very
\ncautious in their personnel planning and have cut jobs for the second month in a row. This is consistent with the fact that
\nservice providers were able to achieve slightly less strong price increases. Overall, however, it seems possible that the
\npleasant developments in industry will spill over into the service sector in the coming months.\n<\/p>\n
\u201cIn industry, companies are facing accelerating increases in purchase prices. This is likely to be partly due to higher energy
\nprices. Prices for crude oil and natural gas on the commodity exchanges have risen by between 12% and 14% in euro terms
\nsince the beginning of January. At least companies were able to pass on some of these cost increases to their customers.\n<\/p>\n
\u201cGDP in Germany is likely to have grown visibly in the first quarter, unless there is a major slump in March, for which there is
\nno indication in the data. Companies in both the service sector and the manufacturing industry are also quite optimistic about
\nthe next twelve months which bodes well for GDP growth of more than 1% this year, which is our expectation.\u201d<\/p>\n
Germany Composite PMI<\/p>\n","protected":false},"excerpt":{"rendered":"Prior 49.1Services PMI 53.4 vs 52.4 expectedPrior 52.4Composite PMI 53.1 vs 52.3 expectedPrior 52.1 Key Points: Business activity…\n","protected":false},"author":2,"featured_media":39490,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[138,219,111,139,69],"class_list":{"0":"post-295937","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-new-zealand","11":"tag-newzealand","12":"tag-nz"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/295937","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=295937"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/295937\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/39490"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=295937"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=295937"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=295937"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}