German Services Sector Sees Fastest Growth in Six Months

German service providers enjoyed a further month of solid output growth, with the latest expansion the most marked in six months. Increased activity was driven by new business wins which continued to expand strongly. With business outstanding rising for the first time since June, companies were encouraged to raise their workforce numbers further during the month.

Moreover, sharply rising input costs led to the strongest rate of charge inflation in four-and-a-half years as service providers passed higher input prices on to their clients. The final seasonally adjusted Markit Germany Services PMI Business Activity rose from October’s 54.2 to a six-month high of 55.1 in November and thereby signalled stronger growth of business activity. The index has now posted above the crucial 50.0 no-change mark for three-and-ahalf years and latest survey results signalled that companies in the Transport & Storage sub-sector enjoyed particularly solid growth. Panel members largely attributed increased output to new business wins.

The final Markit Germany Composite Output Index – which measures the combined output of the manufacturing and service sectors – posted 55.0 in November, little-changed from October’s 55.1 and indicative of solid growth of private sector output.

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.