The private sector activity in Germany decreased in March, a joint preliminary report from S&P Global and Hamburg Commercial Bank (HCOB) showed on Wednesday. The Composite PMI Output Index stood at 49.7 in the reported month, down from 51.3, marking a four-month low in contraction territory.
According to the report, the Services PMI Business Activity Index dropped more sharply to 48.8, its lowest in 14 months. Meanwhile, the Manufacturing PMI Output Index in the country was subdued at 51.6, down from 52.1 the previous month. The Manufacturing PMI stood at 48, slightly lower than the 48.3 recorded in March.
Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, noted that "Germany's export-driven growth model is facing serious challenges," but added that manufacturers have shown resilience, buoyed by a second month of rising output and a rare increase in export orders. However, optimism dropped sharply among service firms, pushing sentiment to its lowest since September 2023.
