Is the German economy starting to recover?
2022.11.23 05:55
Is the German economy starting to recover?
Budrigannews.com – On Wednesday, a survey on the economy showed that firms saw price pressures fall from recent highs, which gave hope that the anticipated recession might be milder than initially thought. This showed that the downturn in German economic activity eased in November.
Global S&P’s flash composite PMI, which measures Germany’s manufacturing and service sectors, which together account for more than two-thirds of the economy, rose to 46.4 in November from 45.1 in October.
This is the fifth month in a row that the reading has fallen below the threshold of 50, which distinguishes growth from contraction.
“November’s flash PMI survey doesn’t change the narrative that Germany is likely heading for a recession, but it does offer some hope that the contraction in the economy will perhaps be shallower than first feared,” stated Phil Smith, an associate director of economics at S&P Global Market Intelligence.
Despite improvements in material availability and a general decrease in supplier delivery times, “underlying demand continues to weaken rapidly, linked to sharp price increases and hesitancy among customers,” according to Smith.
The manufacturing index increased from 45.1 in October to 46.7 in a separate development; the consensus estimate was 45.0.
The services index fell slightly to 46.4.46.2 from a final reading of 46.5 in October, according to the consensus estimate.
