Mubasher: Germany’s private sector gained traction in April, with the pace of expansion stabilising after dropping to an eight-month low in March, data released on Monday showed.
The country’s flash composite output index registered 55.3 in April, an increase from the 55.1 logged the month before, and an overall two-month high, data by IHS Markit showed on Monday.
Job creation was at a three-month high this month, although businesses expressed “less optimism” for their activity outlook for the year ahead “amid further slowdown in new order growth.”
The private sector’s job creation rebounded from a seven-month-low in March to the highest level since January this year, which indicated a “faster rise in service sector workforce numbers – the second quickest in the past year,” the report stated.
On the other hand, manufacturing employment growth was at the slowest level for eight months.
The services purchasing managers’ index (PMI) and the manufacturing PMI both registered expansions in April.
The IHS Markit Flash Germany Manufacturing PMI was seen at 58.1 at the start of the second quarter of 2018 compared to 58.2 in March, which IHS Markit said was “little-changed” but marked “another strong monthly improvement in overall manufacturing sector performance.” However, April’s manufacturing PMI was the lowest reading since July 2017.
In terms of new orders received by German private sector firms, these increased at the “slowest rate” for more than a year-and-a-half in April.
“New business in the service sector showed the smallest gain since August last year, while growth of manufacturing order books eased for the fourth month running to the slowest since November 2016. Moreover, goods producers reported a further slowdown in new export order growth to a 16-month low,” survey data indicated.
IHS Markit further noted that overall business confidence in Germany had dipped to its lowest level since November, whereas manufacturers’ optimism improved slightly from an 18-month low in March.
By 9:27 am GMT, the EUR/USD pair shed 0.47% to $1.2230.
