London, Tuesday, 23 August 2022
In August 2022, the S&P Global Germany Composite PMI dropped from 48.1 in July to 47.6 vs market expectations of 47.4, according to flash estimates.
The number indicated a second consecutive month of declining private sector activity, the worst drop since June 2020, as both the factory (49.8) and services (48.2) shrank, with demand being weighed down by uncertainties, high inflation, and rising interest rates. New business inflows kept declining, new business from abroad fell to its lowest level in over two years, and the pace of job creation slowed to its lowest point in March 2021.
The pricing front saw slower input and output inflation for a fourth month, but overall inflation remained high due to rising energy costs and wages.
As a result of worries about high inflation, future energy supplies, and reluctance to spend, firms' estimates for future activity increased from July's 26-month low, but confidence remained muted and much below the level observed before Russia's invasion of Ukraine.
(Source: Markit Economics // Report by: The Decision Maker – Finance editors)