German business activity at 5-month low in August
Economy
2h ago(Source: baha news)
EPA-EFE/MARTIN DIVISEK
Economy
The German private sector remained in contraction in August, according to the preliminary report by S&P Global/Hamburg Commercial Bank (HCOB) on Thursday. The composite Purchasing Managers' Index (PMI) was estimated at 48.5 compared to 49.1 in July, a five-month low. The index was dragged down by the manufacturing sector, whose PMI dropped from 43.2 in July to 42.1 in August, while the services PMI slid from 52.5 in July to 51.4 in August. The report noted a drop in demand as inflows of new work fell the most since February, including new export business. Meanwhile, workforce numbers fell for the third month running and at the fastest rate for four years. Business expectations declined as well to their lowest point since January.
"The anticipated recovery in the second half of the year is failing to take shape... Instead, the odds of a second straight quarter of negative growth have gone up, meaning we might be back to talking about a recession in Germany soon," HCOB Chief Economist Cyrus de la Rubia said.