Germany’s private sector growth moderated at the start of the second quarter, survey data from Markit Economics showed Thursday.
The flash composite output index fell to 54.2 in April from an eight-month high of 55.4 in March. The latest index reading was still the second-strongest since last September.
The weaker increase in activity reflected slower growth at both manufacturers and service providers. Some companies attributed this to a weaker rise in new orders and increased prices.
The services Purchasing Managers’ Index dropped to 54.4 in April from 55.4 in March. It was below the expected score of 55.5.
The manufacturing PMI fell unexpectedly to 51.9 from 52.8 in March. Economists had forecast the indicator to rise to 53.
“Overall, April’s survey data are consistent with further economic growth at the start of the second quarter,” Oliver Kolodseike, an economist at Markit said.
“However, it will be interesting to see whether weaker new order growth and increased prices will result in a further slowdown of output expansion or whether the German economy will regain momentum in coming months.”
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