The headline HCOB Flash Germany Composite PMI Output Index moved back above the 50.0 no-change threshold for the first time in ten months in April. At 50.5, up from 47.7 in March, it signaled a modest rate of expansion in private sector business activity. The upturn was led by a pick-up in services business activity, which after stabilising in March recorded its strongest growth since June 2023 (index at 53.3). The manufacturing output index meanwhile remained in sub-50 contraction territory (at 45.0), but back-to-back monthly rises saw it move close to January?s recent high and signal one of the slowest rates of decline in the past year.

April?s flash survey showed contrasting trends in demand conditions at the sector level. Whereas services new business rose for the first time in ten months, manufacturers recorded a sharp and accelerated drop in inflows of new work.

On the employment front, there was likewise a dichotomy between rising workforce numbers in the service sector and further manufacturing job cuts. The rate of hiring in the service sector even quickened slightly and was the second-fastest seen in the past ten months.

Backlogs of work continued falling across the German private sector during April, in line with the trend every month since August 2022.

Despite manufacturers reporting challenging demand conditions and maintaining a preference for lower workforce numbers, they signaled improved expectations towards future production.

Powered by Commodity Insights