Investing.com - Private sector output in Germany eased slightly in February, but maintained strong growth momentum, preliminary data showed on Wednesday.
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 57.4 in February, down from January's 81-month high of 59.0. It missed forecasts for 58.5.
Nevertheless, the latest reading was still among the highest seen since early-2011 and reflected robust, albeit slower, growth across both the manufacturing and service sectors.
The flash manufacturing purchasing managers’ index declined to 60.3 from a final reading of 61.1 in January. Analysts had expected the index to slip to 60.6.
Factory output growth stayed strong but eased to a four-month low, the pace of expansion moderating further from December’s recent peak.
Service sector business activity likewise showed a slower rate of growth than that seen during the month before, when it had reached the highest since March 2011.
The preliminary German services purchasing managers’ index fell to 55.3 this month from January's near seven-year high of 57.3. That was below expectations for a reading of 56.9.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Higher new orders were recorded for the thirty-eighth month running in February, a new record for the series which stretches back more than two decades.
Commenting on the report, Phil Smith, Principal Economist at Markit, said, “The performance so far in the first quarter remains better than that seen in final three months of 2017, which saw GDP rise 0.6%. IHS Markit is currently forecasting an improved outturn of 0.9% in quarter one."