German services sector downturn eases in November -PMI
2023.12.05 04:24
© Reuters. FILE PHOTO: A waiter carries food at the beer garden of the Park Cafe, after its re-opening, amid the spread of the coronavirus disease (COVID-19) in Munich, Germany, May 18, 2020. REUTERS/Andreas Gebert/File Photo
BERLIN (Reuters) – Business activity in the German services sector declined in November although at a slower rate than the previous month, a survey showed on Tuesday.
The HCOB final services Purchasing Managers’ Index (PMI) rose to 49.6 in November from 48.2 in October, hovering slightly below the 50 level that signals growth in activity.
“Service providers are still wrestling with a decline the November survey signals a significant easing of the demand in new business, both domestic and international. Yet, dip,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
The survey showed the first rise in service sector employment in three months, although the increase was marginal.
In a sign of the challenges ahead, service providers’ expectations clouded over slightly on the previous month, as high energy costs, market uncertainty and weakness in the broader economy continued to weigh on the sector.
The composite PMI index, which comprises services and manufacturing, remained in contraction territory despite increasing in November to 47.8 from 45.9 in October.
