The Germany service sector returned to growth in June after shrinking in the previous two months, but the rate of growth was slower than initially estimated, final data released by Markit Economics and BME showed Wednesday.
The seasonally adjusted purchasing managers' index for the service sector rose to a three-month high of 50.4 in June from 49.7 in May, moving above the no-change 50 mark - which separates growth from contraction - for the second successive month. The revised score was, however, notably lower than 51.3 estimated earlier.
Data showed that part of the upturn in service sector activity was driven by the completion of outstanding projects in June. New orders in the sector decreased for fourth consecutive month, although the rate of contraction eased to the slowest since March.
Firms lowered their workforces further during the month. Though the pace of job shedding was only moderate, the latest fall was the most marked since September 2012.
Meanwhile, confidence about the prospects for the German service sector has weakened over the next 12 months, with the degree of positive sentiment reaching the lowest so far in 2013.
At the same time, the composite output index, which measures performance of both the manufacturing sector and the service sector, advanced to 50.4 in June from 50.2 in May, indicating a modest acceleration in overall growth. The flash estimates were for a score of 50.9.
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