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23 Apr 2015
German private sector activity growth slowed in April – Flash PMI reports
FXStreet (Mumbai) - The seasonally adjusted Markit Flash Germany Composite Output Index fell from March’s eight-month high of 55.4 to 54.2 in April.
Manufacturing PMI cooled down to 51.9 from 52.8 in March, while the services PMI cooled down to 54.4 from 55.4 in March. Both the data missed the consensus estimates.
Weak Euro brings new orders, Inflation on the rise
German private sector companies signalled a fourth successive monthly rise in new business in April, mainly due to a slight increase in foreign orders. Labour market developments remained positive in April with companies continuing to add to their payrolls. The economy also witnessed a second consecutive monthly increase in input costs, which led a further rise in output prices. The rate of charge inflation accelerated since March and was the most marked since January 2014.
As per Oliver Kolodseike, Economist at Markit and the author of the Flash Germany PMI, “April’s survey data are consistent with further economic growth at the start of the second quarter. However, it will be interesting to see whether weaker new order growth and increased prices will result in a further slowdown of output expansion or whether the German economy will regain momentum in coming months.”
Manufacturing PMI cooled down to 51.9 from 52.8 in March, while the services PMI cooled down to 54.4 from 55.4 in March. Both the data missed the consensus estimates.
Weak Euro brings new orders, Inflation on the rise
German private sector companies signalled a fourth successive monthly rise in new business in April, mainly due to a slight increase in foreign orders. Labour market developments remained positive in April with companies continuing to add to their payrolls. The economy also witnessed a second consecutive monthly increase in input costs, which led a further rise in output prices. The rate of charge inflation accelerated since March and was the most marked since January 2014.
As per Oliver Kolodseike, Economist at Markit and the author of the Flash Germany PMI, “April’s survey data are consistent with further economic growth at the start of the second quarter. However, it will be interesting to see whether weaker new order growth and increased prices will result in a further slowdown of output expansion or whether the German economy will regain momentum in coming months.”