FXStreet (Mumbai) – The final Markit/BME Germany Manufacturing Purchasing Managers’ Index (PMI) in July printed at 51.8, beating the estimate of 51.5, but little changed from June’s 51.9 reading.
The manufacturers reported the first decline in foreign demand since January. The domestic market was the main driver of new order growth. The rate of job creation reached a three-month high, but was modest overall.
Input costs increased for the fourth consecutive month in July due to a weaker Euro and a shortage of certain raw materials. In response to higher costs, some firms raised their charges.
As per Oliver Kolodseike, economist at Markit and the author of the report, “The German manufacturing sector remained stuck in a low gear at the start of the third quarter, with the PMI signalling further, albeit only modest, growth. Output and new orders both rose at below-average rates, while new export business fell for the first time in six months, suggesting that the domestic market was the main source of increased demand. Meanwhile, input and output prices both continued to rise during July, suggesting that Germany’s trip into deflationary territory at the start of the year was only temporary.”
(Market News Provided by FXstreet)