Activity in the German manufacturing sector decreased at a faster rate in May, data from a survey by Markit Economics and BME showed Thursday.
The seasonally adjusted purchasing managers' index (PMI) for the manufacturing sector dropped to 45 in May from 46.2 in April. A PMI reading below 50 indicates contraction in the sector, while one above suggests growth. Economists were looking for a reading of 47 in May.
The indicator of output in the manufacturing sector decreased to a 35-month low of 44.6 in May from 47.3 in the previous month.
New business received by German manufacturers fell at the fastest rate in six months. Manufacturers reduced their workforces at the fastest rate since February 2010, while input price inflation in the sector came at the lowest level in four months.
At the same time, the PMI for the service sector remained unchanged at 52.2 in May, but came in above economists' forecast for a score of 52.
The composite output index, which measures performance of both the manufacturing sector and the services sector, decreased to 49.6 in May from 50.5 in April, falling below the non-change 50 mark for the first time in six months.
by RTT Staff Writer
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