Weaker details underpin strong PMI prints

Above-consensus prints for the German PMIs too, with services at 57.6 (56.9 exp, 57.8 prev), manufacturing at 53.4 (51.5 exp, 52.4 prev) and composite at 52.8 (51.0 exp, 52.0 prev). However, other than employment, the details were much more subdued in terms of output and new orders but price pressures continued. Highlights from the press release:

• "Data pointed to unprecedented inflationary pressures, with firms linking the latest rises with ongoing supply issues and shortages."
• "The latest uplift in new work was the slowest for nine months as gains to demand were hindered by supply bottlenecks, input shortages and an associated decline in demand from the automotive sector"
• "November's flash data pointed to a stalling of new business at German service providers"
• "The rate of expansion in manufacturing new orders remained among the weakest since the recovery began in 2020, despite quickening since October to a solid rate"
• "The rate of [price] increase hit a survey record for the second month running as firms sought to maintain margins by passing greater costs through to clients where possible."
• "German companies continued to take on additional staff in November, extending the current sequence of higher employment which began in January. According to anecdotal evidence, firms were taking on staff to alleviate capacity pressures and in preparation for a strong rebound in the coming months."