DE: PMI Composite


Wed Jun 03 02:55:00 CDT 2015

Consensus Actual Previous
Composite - Level 52.8 52.6 54.1
Services - Level 52.9 53.0 54.0

Highlights
Economic growth looks to have been a little softer than originally thought in May. The final composite output index was 52.6, 0.2 points below its flash estimate, 1.5 points short of its final April reading and a 5-month low. However, the downward revision masked a marginally stronger revised service sector where the final PMI weighed in at 53.0, up a tick from its flash mark but also a point beneath its final April level.

Service sector growth was the weakest so far in 2015 and reflected a smaller gain in new orders and a relatively sharp depletion of backlogs. Optimism about the year ahead also dipped to its lowest mark over the year to date but at least the rate of job creation accelerated slightly and was above its long-run trend.

Higher input costs prompted a fourth consecutive rise in service provider charges and the average rate of increase here was the strongest since January 2014.

Today's revisions leave intact a disappointing set of PMIs for May and increase the likelihood that second quarter GDP growth will be on the soft side of earlier expectations. If so, the recent pick-up in inflation could yet prove short-lived.

Definition
The Germany Composite PMI is based on original survey data collected from a representative panel of 1,000 companies based in the German manufacturing and service sectors. The final Germany Composite PMI follows on from the flash estimate which is released a week earlier and is typically based on at least 75 percent of total PMI survey responses each month.

The Germany Services PMI is produced by Markit and is based on original survey data collected from a representative panel of over 500 companies based in the German service sector. The final Germany Services PMI follows on from the flash estimate which is released a week earlier and is typically based on at least 75 percent of total PMI survey responses each month.


Description
The Purchasing Managers Index (PMI) survey has developed an outstanding reputation for providing the most up-to-date possible indication of what is really happening in the private sector economy by tracking variables such as sales, employment, inventories and prices. The indices are widely used by businesses, governments and economic analysts in financial institutions to help better understand business conditions and guide corporate and investment strategy. In particular, central banks in many countries (including the European Central Bank) use the data to help make interest rate decisions. PMI surveys are the first indicators of economic conditions published each month and are therefore available well ahead of comparable data produced by government bodies.