Big beats for German PMIs

Manufacturing 3.5 points higher than expected at 60.5 (highest since August), services 4.2 points better than expected at 52.2 (close to October/November levels) and copositive 4.9 points better at 54.3 (highest since September). Some divergence in confidence between manufacturing and services while inflationary pressures were not as high as some other recent months.

• "The goods-producing sector drove a renewed increase in new orders at the start of the year. Overall inflows of new business showed the strongest rise since last September "
• "New export business received by services firms continued to fall, however, hinting that the upturn here was driven by the domestic market."
• In manufacturing "growth projections for the year ahead were the most positive since last June, reflecting easing supply-chain concerns and hopes of stronger demand as the Omicron wave of COVID-19 subsides. Service sector expectations meanwhile ticked down slightly from December’s four-month high but remained comfortably above the long-run average."
• On inflation: "Input cost inflation ticked up fractionally in January and was among the fastest on record (exceeded only by those in June, August, October and November last year)"
• "The rate of inflation in January was second only to that recorded in November last year. Indeed, both monitored sectors saw faster increases in charges, with goods prices continuing to rise particularly sharply."