German economy accelerates less in April
Growth in manufacturing activity in Germany's private sector eased modestly from a near six-year high this month, while the purchasing managers' index of services lost 0.9 points to land at an also significantly high reading of 54.7, IHS Markit said on Friday. The 50-point mark separates expansion from contraction. The composite measure of Eurozone's largest economy lost 0.8 points and came in at 56.3.
The flash gauge of industrial production was 0.5 points lower at 59.2 and the manufacturing PMI ticked 0.1 points down to 58.2. The company's analysts pointed to the registered slowdown in the pace of new business and hiring, as well as in price increases. Overall backlogs increased for the eleventh straight month, driven by manufacturing, but in services they declined. Input costs rose, where respondents from German factories put the jump at the highest level since May 2011, while non-manufacturing registered a slowdown in growth.
"At 56.3, the composite output index lost a little ground from March’s 57.1 but is nonetheless above the Q1 average of 56, which itself was the highest of any quarter since Q2 2011. Although manufacturing continued its run of impressive growth in April, a closer look at the latest services data suggests that overall expansion may continue to ease in the coming months," said Trevor Balchin, senior economist at IHS Markit.