German private sector growth eased in April with activity reaching levels close to stagnation, a survey by Markit Economics revealed Monday.
The composite output index, that measures performance of both manufacturing and services, fell to a five-month low of 50.9 in April from 51.6 in March. A reading above 50 indicates expansion of the sector, while a reading below 50 suggests contraction.
Economists expected a reading of 49.3. New order volumes across the German private sector as a whole declined for the second month running in April.
"Germany's economy continued to rest on a knife edge of recession in April, with modest service sector growth only just counterbalancing the escalating manufacturing downturn," Markit senior economist Tim Moore said.
The manufacturing purchasing managers' index tumbled to a 33-month low of 46.3 in April from 48.4 in March. This confounded economists' forecast for an increase to 49.
The services activity index rose marginally to 52.6 from 52.1 in March. Expectations were for reading of 52.3.
by RTT Staff Writer
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