Latest data released by Markit/BME - 3 September 2020
- Composite PMI 54.4 vs 53.7 prelim
The preliminary report can be found here. The final report sees a decent upside revision to the initial estimates, but it still reaffirms that the recovery in the German services sector is running out of steam in August.
That reflects the broader underlying sentiment across the region as economic progress continues to only be driven by domestic demand, which is slowly taking a hit amid the more tepid labour market conditions i.e. increasing job losses.
Markit notes that:
"August's services PMI data point to a loss of momentum in the recovery from the record contraction caused by the COVID-19 pandemic. Business activity across the services economy increased more slowly after strong growth in July, with the post-lockdown surge in activity across consumer-facing sectors losing some steam, and those areas less affected by COVID related restrictions also continuing to struggle for traction.
"Underlying demand looks to be improving, but the data show that the progress in August was gradual and predominantly driven by the domestic market, which itself has been weakened by job losses during the pandemic. However, the picture on the employment front is starting to look a little more encouraging, with some signs of hiring in the service sector accompanied by an easing rate of retrenchment across manufacturing, plus the news that the shorttime work scheme across Germany has been extended to the end of next year."
