Latest data released by Markit/BME - 23 August 2021
- Prior 65.9
- Services PMI 61.5 vs 61.0 expected
- Prior 61.8
- Composite PMI 60.6 vs 62.2 expected
- Prior 62.4
The German economy continues to grow strongly though there is a slight moderation from peak reopening conditions. The ongoing supply chain disruptions aren't helping as manufacturing output hits a seven-month low.
But that is at least offset by more robust employment conditions, growing for an eighth straight month, as well as strong business confidence towards activity outlook.
Markit notes that:
"With August's flash PMI still firmly inside growth territory, the recovery of the German private sector looks to be continuing at a healthy pace. Although growth has slowed down since July, the data are still pointing to a stronger economic expansion in the third quarter than the provisional 1.5% increase in GDP seen in the three months to June.
"This is despite signs of a further slowdown in manufacturing, where production levels continue to be held back by supply bottlenecks and businesses remain under pressure from record cost increases. Services has taken over as the main growth driver, having followed up July's record expansion with another stellar performance in August, as demand across the sector continues to rebound.
"Given the intense cost pressures facing businesses and reports from some of skill shortages, it's encouraging to see a continuation of the recent rapid recovery in employment levels as firms look to address capacity shortages. However, many manufacturers remain inhibited by a dearth of materials and components and supply delays, which are likely to remain constraining factors for months to come."