Gloomy indicators and economic downturn in Germany
2022.12.16 03:54
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Gloomy indicators and economic downturn in Germany
Budrigannews.com – A preliminary survey revealed on Friday that a downturn in German economic activity eased for the second month in a row in December, raising hopes that an anticipated recession might be milder than initially anticipated due to decreasing price pressures.
Global S&P (NYSE:) From 46.3 in November, Germany’s flash composite Purchasing Managers’ Index (PMI), which tracks both the manufacturing and services sectors that together make up more than two-thirds of the economy, increased to 48.9 in December.
A reading of 46.5 had been predicted by analysts in a Reuters poll.
The reading has been below the 50 threshold, which distinguishes growth from contraction, for the sixth month in a row in December.
Phil Smith, an economics associate director at S&P Global Market Intelligence, stated, “As we head towards the end of the year, the latest flash PMI survey paints a somewhat less gloomy picture of Germany’s economy.”
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“Nerves have settled somewhat compared to the situation three months ago, when concerns about the energy crisis were at their peak,” he continued, “in a further sign that the expected recession could be shallower than first feared.”
In a separate development, the manufacturing index increased to 47.4 from 46.2 in November. 46.3 was the consensus estimate.
The services index increased from its November reading of 46.1 to 49.0. 46.3 was the consensus estimate.
