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German Private Sector Activity Bounces Back In April

Published 04/23/2018, 03:35 AM
© Reuters.  German Private Sector Growth Accelerates in April: PMI

Investing.com - Private sector output in Germany improved in April, bouncing back from the lowest level in eight months, according to survey data released on Monday.

The closely-watched report helped ease concern over the health of the euro zone's largest economy.

Market research group Markit said that its Flash German Composite Output Index, which measures the combined output of both the manufacturing and service sectors registered a reading of 55.3 this month, up from 55.1 in March.

Economists had forecast a reading of 54.8.

The preliminary German services purchasing managers’ index inched up to 54.1 this month, from 53.9.

That was above expectations for a reading of 53.9.

The flash manufacturing purchasing managers’ index declined to 58.1, the lowest in nine months, from a final reading of 58.2 in March.

Analysts had expected the index to slip to 57.6.

On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.

Commenting on the report, Phil Smith, Principal Economist at Markit, said, “Growth of Germany’s private sector steadied in April, to arrest the loss of momentum seen in February and March. With both manufacturing and services seeing slightly quicker increases in output, the data show the economy making a solid start to the second quarter."

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