Services Sector Rose More Than Expected In Germany
German services sector growth for June reached its 4-month maximum. Markit's final services PMI grew from the 20-month minimum of 52.1 to 54.5. The improvement was due to rising new orders and domestic demand. Markit's manufacturing PMI dropped from 56.9 to 55.9. Markit's final composite PMI, which covers both manufacturing and services sectors, increased from 53.4 to a 3-month maximum at 54.8.
Phil Smith (IHS Markit's principal economist) noted: "June's increase in activity in the largely domestically focused service sector was the steepest seen since February and strong enough to offset a further loss of momentum across manufacturing, where slowing global trade has weighed on growth". And: "An expanding workforce base represents another factor supporting household spending, alongside upward wage pressures and still-elevated consumer confidence".