Germany Manufacturing PMI at 18 months low in June

Hilal Sarı / Istanbul, June 22 () - The IHS Markit Flash Germany Manufacturing PMI slipped to an 18-month low of 55.9 in June from 56.9 in May.

According to the data released by IHS Markit;

Flash Germany Composite Output Index rose to 54.2 in June from 53.4 in May, to mark the first uptick in the index since January. Flash Germany Services PMI Activity Index increased to 53.9 (52.1 in May) to 3-month high. Flash Germany Manufacturing PMI declined to 55.9 in June (56.9 in May) to 18-month low. Flash Germany Manufacturing Output Index declined to 54.8 in June (55.0 in May) to 19-month low.

A faster rise in manufacturing, employment was the only positive influencing factor.

Total inflows of new business rose at the fastest rate for three months in June.

Business confidence towards the year-ahead outlook for activity was also found to have improved slightly in June. However, the overall degree of optimism remained well below the highs in 2017.

Commenting on the flash PMI data, Phil Smith, Principal Economist at IHS Markit said: “The headline PMI numbers for Germany make for slightly better reading in June thanks to a pick-up in the pace of expansion in the service sector, though the performance over the second quarter as a whole still looks to be one of only modest growth.

“The big disappoint was manufacturing, where the PMI fell further from last December’s record high to the lowest in one-and-a-half years. A worrying slide in export order growth seen since the start of the year continued into June, with the latest survey’s anecdotal evidence highlighting quieter client interest from the US and China.

“A clear divergence between manufacturing and services was also seen in the survey’s gauge of business confidence. Services firms are in buoyant mood towards the outlook over the next 12 months, but manufacturers see growth continuing to cool and are their least optimistic for over three years.”