Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

German services sector loses momentum-PMI

by Uma
0 comment

German services sector loses momentum-PMI

BERLIN (Reuters) – Growth in Germany’s services sector slowed in July for the second consecutive month, due to a drop in demand, a survey showed on Thursday.

The HCOB final services Purchasing Managers’ Index (PMI) fell to 52.3 in July from 54.1 in June, but it remained above the 50 level that signals growth in activity.

Activity in the service sector is still benefiting from the good dynamics of the first half of the year, said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

“However, growth is clearly petering out on the back of recessionary trends in the manufacturing sector,” he said.

Placing the brakes on growth was a decrease in demand for services, the latest survey data showed. Optimism is dwindling fast, with services companies no longer expecting activity to be higher in twelve months from now.

The composite PMI index, which comprises services and manufacturing, moved into contraction territory, falling to 48.5 in July from 50.6 in June.

“The risk of the whole economy falling into a recession in the second half of the year has clearly increased,” de la Rubia said.


(Reporting by Maria Martinez; Editing by Toby Chopra)