DE: PMI Composite


Mon Oct 05 02:55:00 CDT 2015

Consensus Actual Previous
Composite - Level 54.3 54.1 55.0
Services - Level 54.3 54.1 54.9

Highlights
The flash composite output index was revised down 0.2 points to 54.1 in the final report for September. This was 0.9 points short of August's final reading but still far enough above the 50 growth threshold to signal another decent month for the German economy

The headline adjustment reflected downward revisions to the flash manufacturing PMI (see last week's calendar entry) as well as the provisional service sector index. The latter now stands at also 54.1, just 0.2 points short of its earlier estimate and 0.8 points weaker than its final mid-quarter reading. Despite the modest downgrade, services continued to benefit from healthy new business inflows and growth here was the strongest so far in 2015. Backlogs were also up again and job creation was the most robust since the end of 2011. Business sentiment was predictably strong but slightly down on August.

Higher input costs largely reflected an increase in wages but the rate of inflation remained below the survey's average. Even so, service sector output prices saw their fastest yearly rise in more than three years.

The German service sector was performing well moving into the new quarter and looks set to make a major contribution to real GDP growth over the period. This is just as well as manufacturing has stuttered in recent months.

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.