German downturn eases further, lifting some gloom – flash PMI
4:44 am Friday, December 16th, 2022
BERLIN (Reuters) – A downturn in German economic activity eased for the second month running in December, a preliminary survey showed on Friday, as retreating price` pressures added to hopes that an expected recession could be milder than first feared.
S&P Global’s flash composite Purchasing Managers’ Index (PMI), which tracks both the manufacturing and services sectors that together account for more than two-thirds of Germany’s economy, rose to 48.9 in December from 46.3 in November.
A Reuters poll of analysts had pointed to a reading of 46.5.
December marks the sixth month in a row that the reading has been below the 50 mark that separates growth from contraction.
“The latest flash PMI survey paints a somewhat less gloomy picture of Germany’s economy as we head towards the end of the year,” said Phil Smith, economics associate director at S&P Global Market Intelligence.
He added that “nerves have settled somewhat compared to the situation three months ago, when concerns about the energy crisis were at their peak, in a further sign that the expected recession could be shallower than first feared.”
Separately, the manufacturing index rose to 47.4 from a final reading of 46.2 in November. The consensus forecast was for 46.3.
The services index rose to 49.0 from a final reading of 46.1 in November. The consensus forecast was for 46.3.
(Writing by Paul Carrel; Editing by Hugh Lawson)
