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03.08.2016 07:57

German service providers reported further growth

German service providers reported further growth of both output and new orders at the start of the third quarter. The respective rates of growth accelerated slightly since June and were above their respective long-run averages. Moreover, companies were encouraged to add to their payrolls, which in turn helped alleviate some pressure on operating capacity.

Meanwhile, the pass through of sharply rising input costs resulted in a further increase in overall charges. The final seasonally adjusted Markit Germany Services Business Activity Index posted above the neutral 50.0 threshold that separates growth from contraction for the thirty-eighth consecutive month in July. Rising from June's 53.7 to 54.4, the index signalled an acceleration in the rate of expansion. According to anecdotal evidence, growth in output was driven by rising demand and higher investments.

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