FX.co ★ Germany Composite PMI Revised Higher in March

The HCOB Germany Composite PMI has been adjusted upward to 51.3, an increase from the preliminary figure of 50.9, and surpassing the February reading of 50.4. This data reflects the most robust growth in the private sector in ten months. The decline in manufacturing has shown signs of easing (improving to 48.3 from 46.5), with production increasing for the first time in almost two years. Conversely, growth in the services sector saw a slight slowdown (decreasing to 50.9 from 51.1). While manufacturing experienced a minor uptick in new orders, the overall new business saw a modest decline due to a decrease in new work at service firms. Additionally, total export sales experienced a downturn. Employment reduction was at its lowest level in ten months, attributed to a decrease in job cuts in manufacturing alongside an increase in recruitment within the services sector. Price pressures have diminished, driven by a slower pace of input costs and output price inflation in services, while discounting in manufacturing has moderated. Lastly, the data indicates a broad-based improvement in expectations for future activity.