German Services PMI eased to a five-month low in June, IHS Markit release showed. The country’s final reading was 54.0 in June thus reaching a five-month low. In May, the reading was 55.4.
Similarly German PMI Composite Output Index slipped to a four-month low of 56.4 in June compared to 57.4 in May.
Though German Services PMI eased in June, the release indicated the continued expansion of the service sector in the month. Total activity, employment and new business have all lifted at rates that were more than their respective long-run survey averages. However, they were slower than the rate seen in May.
The release revealed, “The seasonally adjusted IHS Markit Germany Composite PMI Output Index fell to 56.4 in June, from 57.4 in May. This signaled the weakest growth of private sector output since February, albeit still one of the sharpest rates in six years. Manufacturing output increased at the second fastest pace since April 2011.”
Another key factor is that June reflected a further easing of cost pressures seen by service providers in June. For the third straight month, the input price inflation rate eased to the weakest pace after September 2016.