Germany's private sector activity declined less than initially estimated in July, but the rate of fall quickened from the previous month, data released by Markit Economics showed Friday.
The composite output index, which measures performance of both the manufacturing sector and the service sector, came in at 47.5 in July, slightly higher than 47.3 recorded in flash estimates. An index reading below 50 signals contraction, while one above suggests growth. The latest figure was lower than June's 48.1, indicating a faster deterioration in business conditions.
The overall decline reflected a sharp and accelerated fall in manufacturing production, which more than offset the improved service sector performance in July.
The seasonally adjusted purchasing managers' index for the service sector increased unexpectedly to 50.3 in July from 49.9 in June, indicating a moderate growth in activity. The flash estimates showed a decline to 49.7.
New business received by service providers decreased significantly in July. Firms remained downbeat about the prospects for business activity at their units in July. Staffing levels continued to rise at a moderate pace across the sector, extending the current period of expansion to three months, data showed.
by RTT Staff Writer
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