Purchasing manager indices were published in Germany, which tell how companies operating in different industries see the industry developing based on the purchases they make.
If the index number is above 50, it indicates growth. If the reading is below 50, it signals weak development in the industry.
According to preliminary data, the purchasing managers’ index for Germany’s service sectors was 49.3 in November, while the median of the forecasts collected from economists by the news agency Bloomberg expected 51.7.
The recent reading is the weakest figure for nine months. Last month, the purchasing managers’ index was at 51.6 points.
Political uncertainty does not make things easier
“These figures are bad news”, Hamburg Commercial Bank (HCBO) economists Cyrus de la Rubia commented to Bloomberg. HCBO also produces purchasing manager indices based on surveys.
There have been problems in the German economy, especially in industry, which has been supported by the pull of the service sectors. Now even this support seems to be faltering.
The industrial purchasing managers’ index was at 43.2 points, while the economists’ median forecast expected 43.0 points. In October, the reading was also 43.0.
Germany is currently facing many challenges. For example, the automotive industry is not a drag and a large employer Volkswagen is planning big savings measures. The workers are planning a strike in early December.
In addition to the economic problems, the German government coalition collapsed in November.
“Political uncertainty that has increased Donald Trump with the election and the new elections in Germany, does not help the situation,” commented de la Rubia.
Source: www.arvopaperi.fi
