German Service Growth Accelerates in March

Growth in Germany’s services sector accelerated further in March, a survey showed on Wednesday, suggesting Europe’s largest economy will post healthy growth in the first quarter.

Markit’s final services index rose to a 15-month high of 55.6 from 54.4 in February, helped by new business in the post and telecommunication sector and the renting, business activities and financial intermediation branch.

Markit’s final composite Purchasing Managers’ Index (PMI), which tracks the activity in manufacturing and services that together account for more than two-thirds of the economy, rose to 57.1 from 56.1 in February to reach a 70-month high.

Markit’s final PMI for manufacturing on Monday showed growth had accelerated at the strongest rate in nearly six years in March. It suggested manufacturing would contribute to overall growth in the first quarter.

Wednesday’s results similarly suggest services, which are not historically a German strength, would also contribute to growth.

Services providers recorded the strongest expansion in new work since February 2016. It was the second straight monthly acceleration after three months of slowing growth.

via Daily Mail

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