German Private Sector Returns To Expansion Territory

(RTTNews) - Germany's private sector returned to expansion territory in July for the first time in four months, purchasing managers' survey data from S&P Global revealed Friday.

The flash composite output index climbed more-than-expected to 51.2 in July from 49.5 in the prior month. The reading was forecast to rise to 49.8.

Growth was centred on the manufacturing sector, where output increased to the greatest extent for almost four-and-a-half years. Meanwhile, activity in the service sector came close to stabilization.

The services Purchasing Managers' Index registered 49.6 in July compared to 48.6 in the prior month. The score was above the expected level of 49.0.

The manufacturing PMI advanced to 52.2 from 50.3 in the previous month. The reading was seen at 50.4.

S&P Global Market Intelligence Economics Associate Director Phil Smith said the German economy made a positive start to the third quarter.

However, given the escalating hostilities in the Middle East in the past week or so, which have put renewed upward pressure on global energy prices, the path to a sustainable recovery still seems very much uncertain, said Smith.