Contraction in the manufacturing sector and a decline in the services sector were observed in Germany during August
According to data from “Markit” statistical bureau, Germany exhibited a significant divergence in the Purchasing Managers’ Indices (PMIs) for the month of August. The manufacturing sector experienced a notable contraction, with the index recording a reading of 39.1 points, surpassing market expectations of 38.9 points. Moreover, this reading marked an increase from the previous estimated value of 38.8 points.
The German industrial sector contracts during the month of August
This index reflects the activity of approximately 1000 companies in both the manufacturing and services sectors. A reading above 50 points is considered indicative of growth, while a reading below this value signifies contraction in the sector.
On the other hand, the services sector experienced a decline. The preliminary reading indicated that the index registered 47.3 points, in comparison to expectations of a value reaching 51.5 points. This is lower than the previous reading of 52.3 points.
The Services Purchasing Managers’ Index relies on a survey conducted among approximately 500 companies in the German services sector. It monitors various variables, including sales, employment, and prices.
Similar to the manufacturing sector, a reading below 50 is indicative of sector contraction, while a reading above this threshold suggests growth, in the services sector as well.
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