Germany's services sector remains weak while manufacturing boosts composite PMI
In August, Germany’s services sector continued to contract, with the S&P Global Germany Services PMI Business Activity Index falling slightly to 49.7 from 49.8 in July—still below the 50 threshold that separates contraction from growth. The index was better than expected forecasts of a drop to 48.5. However, activity in the manufacturing sector improved enough to lift the S&P Global Germany Composite PMI Output Index higher overall. This suggests while services remain sluggish, industrial production is showing some resilience and contributing positively to economic output. The mixed performance highlights ongoing challenges for the German economy as it navigates global supply chain issues and domestic demand pressures.
Topics: economic contraction Germany S&P Global PMI services sector