September 23, 2014

Markit’s preliminary PMI Composite Output Index for Germany edged up to 54.0 in September from a revised 53.7 in August (previously reported: 54.9). The composite PMI—the result of a survey of over 1,000 manufacturing and services businesses based in Germany—has hovered above the 50-threshold since April 2013.



According to Markit, the marginal improvement in September was due to a slightly better performance in the services component. Markit pointed out that the print, “signalled a continuation of the ongoing expansion in German private sector output,” which, “surveyed companies generally linked [...] to increased order intakes.” However, the manufacturing component continued its ongoing slowdown and recorded the lowest level in 15 months, falling closer to stagnation. Against this background, Markit noted that, “the gap between manufacturing and services widened further in September.”

FocusEconomics Consensus Forecast panelists expect the economy to expand 1.8% in 2014, which is unchanged from last month’s forecast. For 2015, panelists expect the economy to expand 1.9%.