| Consensus | Consensus Range | Actual | Previous | |
| Composite Index | 53.4 | 53.1 to 53.5 | 52.1 | 53.8 |
| Manufacturing Index | 49.8 | 49.3 to 50.4 | 48.4 | 49.6 |
| Services Index | 53.9 | 53.0 to 55.0 | 52.7 | 54.5 |
Highlights
Germany's latest flash PMI data suggest that the private sector lost pace in November, with both manufacturing and services showing softer growth. The composite PMI fell to 52.1 from October's 29-month high of 53.9, signalling continued expansion but at a weaker rate. Services remained in growth territory at 52.7, though momentum eased, while manufacturing slipped further below the 50 threshold to 48.4, marking a six-month low and signalling renewed contraction.
New business inflows rose only marginally, as service-sector demand cooled and factory orders fell sharply, particularly export sales. This weakening demand translated into declining backlogs, reversing the brief improvement seen in October. As capacity pressures eased, firms cut jobs more rapidly, suggesting growing caution across the private sector.
Price trends offered mixed signals. Output price inflation moderated due to slower increases in services and falling factory-gate prices, yet overall cost pressures remained unchanged. Wage-driven expenses continued to weigh on services, while manufacturers benefited from lower input prices.
Business confidence stayed broadly stable. Manufacturers became slightly more optimistic, but this was offset by softer sentiment in services. Overall, the latest updates point to a slowing recovery, with demand fragility and labour market softening emerging as key risks, taking the RPI to minus 20 and the RPI-P to minus 24. This means that economic activities are now behind expectations in Germany.
Market Consensus Before Announcement
The composite flash seen at 53.4 in the November flash versus 53.9 in October final. Manufacturing is seen at 49.8 versus 49.6 and services at 53.9 versus 54.6.
Definition
The flash Composite Purchasing Managers' Index (PMI) provides an early estimate of current private sector business activity by combining information obtained from surveys of around 1,000 manufacturing and service sector companies. The flash data are released around ten days ahead of the final report and are typically based upon around 85 percent of the full survey sample. Results covering a range of variables including manufacturing output, employment, new orders, backlogs and prices are synthesised into a single index which can range between zero and 100. A reading above (below) 50 signals rising (falling) activity versus the previous month and the closer to 100 (zero) the faster is activity growing (contracting). The report also contains flash estimates of the manufacturing and services PMIs. The data are produced by S&P Global.
Description
Investors need to keep their fingers on the pulse of the economy because it dictates how various types of investments will perform. By tracking economic data such as the purchasing managers' manufacturing indexes, investors will know what the economic backdrop is for the various markets. The stock market likes to see healthy economic growth because that translates to higher corporate profits. The bond market prefers less rapid growth and is extremely sensitive to whether the economy is growing too quickly and causing potential inflationary pressures.