German economy starting to gain momentum
2023.01.24 04:34
German economy starting to gain momentum
By Kristina Sobol
Budrigannews.com – A preliminary survey released on Tuesday revealed that, despite the fact that sentiment was still far from predicting a return to growth, businesses looked forward to the new year with optimism and pressure on the German economy decreased further in January.
Global S&P (NYSE:) From 49.0 in December, 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 49.7 in January.
The indicator fell below the 50 level in January for the seventh month in a row, which distinguishes growth from contraction. However, for the first time since June, the services component experienced slight growth.
Phil Smith, an economics associate director at S&P Global Market Intelligence, stated that the January flash PMI “lends support to the notion that a recession in the euro zone’s largest economy is by no means a foregone conclusion.”
He added, “In addition to easing strains in the supply chain, January’s preliminary survey pointed to a continued slowdown in rates of inflation.”
Separately, Germany’s manufacturing index decreased slightly to 47.0 from 47.1 in December. 47.9 was the consensus estimate.
However, the services index increased to 50.4, surpassing the consensus forecast of 49.6 and indicating slight activity growth from 49.2 in December.
