DE: PMI Composite


Wed Aug 05 02:55:00 CDT 2015

Consensus Actual Previous
Composite - Level 53.4 53.7 53.7
Services - Level 53.7 53.8 53.8

Highlights
Private sector business activity was revised up modestly in the final PMI data for July. At 53.7 the composite output index was 0.3 points higher than its flash estimate and in line with its final June outturn. At the same time, the flash services PMI was nudged a tick firmer to 53.8, also matching its final mark at the end of last quarter.

Stronger growth of new business was a key factor underpinning the PMI and employment also made fresh ground, in fact rising more sharply than in any month since March. However, backlogs declined and sentiment fell to a 7-month low.

Input costs increased again but the rate of inflation was little changed from May and June and the yearly change in service provider charges edged a little lower.

Overall it looks as if the German economic upswing remains intact, but still disappointingly slow, while deflation risks are subsiding. However, Eurozone policymakers will want more from the region's largest member to ensure that recovery in the Eurozone finally starts to gain some real traction.

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.