GERMAN DATA
Key notes from the release:
- “Services business activity fell into contraction for the first time in nine months in November (index at 49.4), finally succumbing to a sustained downturn in inflows of new work across the sector”
- “Surveyed firms commented on uncertainty among customers and highlighted fewer new orders from manufacturers. Falling goods production remained a major drag on overall economic performance”
- “There was another broad-based reduction in backlogs of work. This lack of pressure on business capacity in turn led to further job cuts across the private sector, which extended the current sequence of decline in employment to six months”
- “Inflationary pressures picked up across Germany midway through the fourth quarter, with both input costs and output prices rising at the quickest rate for three months. This owed exclusively to developments in the service sector”
- “Manufacturers, on the other hand, reported further steep (and even slightly faster) decreases in both factory gate prices and purchasing costs, citing the influence of weak demand from customers and across supply chains”.
- “Some surveyed firms commented on hopes of a boost to the economy following elections next year. That said, uncertainty towards the economy and the political situation meant that sentiment was still much weaker than seen on average over the series history”.
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