German PMI Composite Output Index grew in February, coming in at 50.7, up from 49.9 the previous month, S&P Global revealed in its report on Friday. However, the result fell short of expectations and below the preliminary reading of 51.1.
The Services PMI Activity Index came in at 50.9, slightly higher than 50.7 the previous month and also below the expected 51.3. However, this is the second reading above the 50 points level that splits growth from contraction. According to the report, companies were slightly more optimistic about the outlook during the month. Even so, the pace of job creation decelerated. In addition, cost pressures remain high due to wage increases.
"A degree of confidence has returned to the economy due to the easing of energy-price and recession concerns, which has helped support demand," said Phil Smith, Economic Associate Director at S&P Global Market Intelligence. "That said, whilst inflows of new business at services firms rose for the first time in nine months in February, the increase was only marginal, indicating that there's little growth momentum to speak of as yet."
