Overall business activity moved closer to stagnation in November. The 47.1 flash composite output index was revised up by a tidy 0.7 points to 47.8, now almost 2 points above October's final 45.9 and at least within striking distance of the 50-expansion threshold.

The positive headline revision was largely due to services where the 48.7 flash sector PMI was revised up to 49.6 to signal only a marginal decrease in activity. Still, a fifth straight fall in new business, albeit at a reduced rate versus October, warned of further shrinkage to come. Backlogs followed suit with the loss here the least since June. Despite soft demand, employment was up for the first time in three months and, looking ahead, service providers were cautiously optimistic about prospects for the coming year.

Less promisingly, input cost inflation rebounded from October's 30-month low to its highest mark since May on the back of stronger wage demands. This contributed towards an increase in output prices at a rate well above the long-run trend. That said, inflation here eased for a fourth successive month and to the lowest level in two-and-half years.

The final November data remain consistent with the German economy sliding into recession by year-end. However, it still seems likely that any downturn will be relatively mild. Today's update lifts the Germany RPI to minus 7 and the RPI-P to 9. Overall economic activity is running just slightly short of market expectations and even then, only due to the surprising weakness of prices.

No revisions are expected leaving the key composite output index at 47.1, up from from Octobers's 45.9.

The Composite Purchasing Managers' Index (PMI) provides an estimate of private sector output for the preceding month by combining information obtained from surveys of around 1,000 manufacturing and service sector companies. Results are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) output versus the previous month and the closer to 100 (zero) the faster is output growing (contracting). The report also contains the final estimate of the services PMI. The data are provided by S&P Global.

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.