DE: PMI Composite


Wed Jan 06 02:55:00 CST 2016

Consensus Actual Previous
Composite - Level 54.9 55.5 55.2
Services - Level 55.4 56.0 55.6

Highlights
The German private sector economy enjoyed a robust end to 2015. Hence, the service sector flash PMI in December was revised up a tidy 0.6 points to 56.0, a 0.4 point gain versus the final November outturn and a 17-month high. With its manufacturing counterpart also revised firmer (53.2) the final composite output index weighed in at 55.5, also a 0.6 point positive adjustment versus its flash reading and similarly a 17-month peak.

As previously indicated, new business expanded at a healthy clip and job creation was the most marked since June 2011. Even so, backlogs accumulated at much the same rate as in November and business sentiment towards the year ahead climbed to its highest point since March.

Nonetheless, inflationary pressures remained quite muted. Hence, although input costs rose again, the rate of inflation was the softest in ten months and another increase in output prices was smaller than in mid-quarter.

Today's revisions underscore a very solid German service sector in December and with manufacturing also showing signs of improvement, the economy should begin 2016 on a firm footing. With orders expanding at a rapid pace, GDP growth this quarter could well be the strongest in more than a year.

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.