The private sector activity in Germany increased in March, a joint preliminary report from S&P Global and Hamburg Commercial Bank (HCOB) showed on Monday. The Composite PMI Output Index stood at 50.9 in the reported month, up from 50.4 registered in January and reaching the highest point since May 2024. However, the figure missed analysts' expectations.
The Services PMI Business Activity Index, while remaining in expansion territory, hit a 4-month low in March, falling from the previous month's 51.1 to 50.2. Meanwhile, the Manufacturing PMI was at 48.3, the highest reading in 31 months. In February, the number was at 46.3.
"What a pleasant surprise – manufacturers have ramped up production for the first time in nearly two years ... The output index has risen in five of the past six months. It might be linked to the import boom from the US, where companies are snapping up goods from abroad to get ahead of looming tariffs," HCBO Chief Economist Cyrus de la Rubia said.
