Germany PMI Manufacturing rose to 64.9 in June, up from 64.4, above expectation of 63.0. PMI Services rose to 58.1, up from 52.8, a 123-month high, above expectation of 55.5. PMI Composite rose to 60.4, up from 56.2, also a 123-month high.
Phil Smith, Associate Director at IHS Markit said:
“As anticipated, the further loosening of COVID-19 restrictions has given an additional boost to the recovery of the German economy, with the ‘flash’ PMI rising steeply to its highest for over a decade. And with containment measures set to be lifted further in July, this strong momentum is on course to carry over to the third quarter.
“The upturn in growth in June was unsurprisingly driven by the service sector, where firms reported the positive effects of looser containment measures and greater levels of travel activity on demand.
“Encouragement can also be taken from the improved performance seen across manufacturing following the recent loss of momentum in the sector. Supply shortages still remain widespread, but a fall in the number of goods producers reporting longer lead times and rising material prices are perhaps the first signs that the worst of the disruption has now passed.
“Price pressures have continued to heat up across the economy as a whole, however, owing in part to a record surge in service sector costs as higher material prices continue to spread from manufacturing and firms report a pick-up in personnel costs. The recovery in employment also gathered pace in June, with the rate of job creation at an all-time high amid strong business confidence and broad-based attempts to expand staffing capacity.”
