July 27, 2015

Markit’s composite Purchasing Managers’ Index (PMI) receded slightly from June’s 53.7 to 53.4 in July. Nevertheless, the composite PMI—the result of a survey of over 1,000 manufacturing and service businesses based in Germany—rests comfortably above the 50-threshold, where it has been since April 2013.



July’s moderation came on the back of slightly slower output growth at both service providers and manufacturers. According to Markit, while output expanded at a somewhat slower pace than in June, growth of new business sped up in July, reflecting that an acceleration of new business in the service sector more than compensated for a moderation in the manufacturing sector. On a negative note, new export business for manufacturers in July recorded the first drop in this year. However, employment rose for a 21st consecutive month and backlogs of work fell. Regarding price developments, both input costs and output charges continued to rise in July.



Markit commented on the result, stating that, “July’s flash PMI data signal further modest, but unspectacular growth in Germany’s private sector, suggesting that the Greek debt crisis is not showing any meaningful negative effects on companies in the Eurozone’s largest member state so far.”

FocusEconomics Consensus Forecast panelists expect fixed investment to expand 2.5% in 2015, which is unchanged from last month’s forecast. For 2016, panelists expect fixed investment to grow 3.5%.