Mubasher: Germany’s private sector slightly picked up steam in June from 20-month low pace in the previous month, driven by resilient demand in the service sector, according to the business data on Friday.

The country’s flash composite output index recorded 54.2 in June, up from 53.4 in the month before, marking the first gain since the first month of the year, IHS Markit's data revealed.

Meanwhile, the growth rate represented the second-lowest level over the past 21 months.

The services purchasing managers’ index (PMI) rose to 53.9 in the sixth month of the year, compared to 52.1 in the preceding month, as business activity in the sector gained momentum at the quickest rate since March.

On the other hand, the IHS Markit Flash Germany Manufacturing PMI was seen at an 18-month low of 55.9 in June, down from 56.9 in the previous month.

The fall in the index came on the back of slower increases in new orders and stocks of purchases, in addition to slight reductions of supply chain delays.

However, this came along with a faster employment rate in the sector.

In terms of new business, overall intakes grew at the fastest rate for three months in June, with the higher demand in the service sector recording the strongest rise since January.

Meanwhile, the manufacturing sector’s factory order books rose at a modest pace, marking the slowest rate since March 2016, with the slightest monthly gain export orders for more than two years.

IHS Markit indicated that overall business confidence in Germany had seen a slight improvement in June, whereas firms’ optimism was remained lower than 2017 highs.

By 8:34 am GMT, the EUR/USD pair went up 0.39% to $1.1649.