According to the report from IHS Markit, business activity continued to fall across Germany’s private sector in May, albeit with the rate of decline easing from the record pace seen in April. Meanwhile, despite being less pessimistic about the outlook, firms continued with further steep job cuts and discounting of prices charged for goods and services.
The headline Flash Germany Composite PMI Output Index recorded a reading of 31.4 in May, up sharply from April’s record low of 17.4 but still the second-lowest figure since comparable data were first compiled in 1998. Underlying data showed similarly steep falls in manufacturing production and services business activity, though in both cases the rates of contraction were discernibly slower than in April amid the reopening of parts of the economy. In the majority of cases lower activity was attributed to restrictions on business operating capacity and reduced demand, linked in turn to the coronavirus disease 2019 (COVID-19) outbreak. Indeed, firms across both monitored sectors reported sustained (albeit much slower) downturns in inflows of new business in May, with export sales showing particular weakness.
The easing of lockdown restrictions and growing hopes of a recovery in domestic and international demand saw the survey’s measure of future output improve further from March’s series record low. That said, business sentiment remained firmly in negative territory and lower than at any point prior to March (since this particular series began in July 2012). Manufacturers remained more downbeat about the longer-term outlook than their service sector counterparts.
Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72.72% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.
© 2011-2021 Teletrade-DJ International Consulting Ltd
Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.
The company operates in accordance with the Markets in Financial Instruments Directive (MiFID).
The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Teletrade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.
TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.
Teletrade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.