German private sector grows modestly in April

German private sector grows modestly in April

Mubasher: Business activity in the German private sector saw a growth in April, but the expansion pace remained subdued at the beginning of the second quarter of the year, according to data released on Thursday.

Germany’s flash composite output index registered 52.1 in April, up from 51.4 in March, IHS Markit's purchasing managers’ index (PMI) data showed.

While this marked a departure from the slowest momentum since almost six years, it was the highest level recorded in two months, but the gauge remained below its long-run average of 53.4.

A solid performance in the service sector continued to back German business activity, offsetting a downturn in the manufacturing segment.

The services PMI rose to 55.6 during the month from 55.4, marking the highest level seen since seven months, IHS Markit data showed.

The IHS Markit Flash Germany Manufacturing PMI was observed at 44.5 in April, compared to 44.1 in March.

Nevertheless, factory activity saw its contraction momentum slowing down since March.

“The overall picture for Germany’s private sector has changed very little,” IHS Markit economist Phil Smith said, adding that “strong growth across the services economy [is] continuing to counteract the export-led weakness in manufacturing.”

By 8:56 am GMT, the EUR/USD pair fell 0.33% to $1.1259.