Latest data released by Markit/BME - 23 November 2020
Despite a slump in the services sector, though expected amid tighter restrictions, German manufacturing continues to power on in November with little signs of disruption. That continues to carry the economy despite a drop to a five-month low in services activity.
Manufacturing output remains elevated, recording 62.7 (although a slight drop from October of 65.1), and that is keeping overall business activity steadier than otherwise anticipated as we look towards the year-end. Markit notes that:
"As expected, the introduction of new lockdown measures in November to combat the spread of COVID-19 has had a disruptive impact on German economic activity, with the flash PMI data showing the service sector suffering its worst performance since May.
"However, the resilience being exhibited by the manufacturing sector, which the survey shows is benefitting for growing sales to Asia in particular, supports our view that any downturn in the final quarter is expected to be far shallower than those seen in the first half of the year.
"The positive news surrounding the development of COVID vaccines has helped lift the spirits among German businesses, many of which are now hoping for a return to normality over the next 12 months. This looks to have been a supportive factor in the latest employment figures, which show factory jobs numbers moving closer to stabilisation and services payrolls edging higher."
