DE: PMI Composite


Thu Dec 03 02:55:00 CST 2015

Consensus Actual Previous
Composite - Level 54.9 55.2 54.2
Services - Level 55.6 55.6 54.5

Highlights
There were no revisions to the flash service sector PMI in the final data for November. At 55.6, the index was 1.1 points above its final October level and at a 14-month high. However, with manufacturing having already been revised stronger (PMI 52.9) the final composite output index weighed in at 55.2, 0.3 points firmer than its preliminary estimate and at an 8-month peak.

New orders received by services expanded at their fastest pace in fourteen months and backlogs continued to accumulate despite another robust gain in the sector's headcount. Business optimism about the year ahead also improved.

Input costs were up again but the rate of inflation was little changed from October and remained broadly in line with the average for the year-to-date. Service providers increased their output prices for a tenth successive month but, again, the rate of inflation was quite subdued and, moreover, the weakest since July.

Services appear to be enjoying a robust period and should make a solid contribution to fourth quarter real GDP growth. Rising new orders and backlogs also bode well for the start of 2016. The main problem is the sector's divergence with manufacturing which will need to step up a gear if the economic recovery is to gain any significance additional momentum.

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.