July saw a further pick-up in the rate of growth of Germany’s private sector economy from a 20-month low in May to a five-month high, driven by a stronger increase in manufacturing output. New order growth also gathered pace, seeing the steepest rise for four months. Private sector firms continued to add staff at a marked rate, while price pressures intensified.
The IHS Markit Flash Germany Composite Output Index rose to 55.2 in July from 54.8 in June, to signal a second successive monthly acceleration in the rate of growth in private sector business activity. The implied expansion was the fastest since February, but remained below the strong trend shown over 2017. By sector, services business activity increased at a solid rate that was little-changed from June, while manufacturing output growth was the fastest since April.