The German economy again saw growth slump in December.
The good business performance in the service sector was again offset by the further decline in production in the manufacturing sector. The collective index for production in the private sector – industry and service providers together – remained at 49.4 points compared to the previous month, as the IHS Markit Institute announced in the course of the first publication.
Above 50 meters, the economic barometer signals growth, below it indicates a shrinking. The manufacturing purchasing managers’ index fell to 43.4 from 44.1 in the previous month. Economists had forecast an average index increase to 44.5. The service sector index climbed to 52.0 points from 51.7 in the previous month. The increase met the expectations of economists.
“With an unchanged 49.4 points, the preliminary assessment signals that the German economy is ending a difficult year on a weak footing,” commented IHS Markit economist Phil Smith. The manufacturing industry continues to slow growth enormously. “