German manufacturing and services sectors surpassed expectations amid VW scandal and slow global economics, both Germany’s powerful sectors have efficiently improved, according to the report released on Markit Economics website.
German Manufacturing Index PMI rose 52.65 in November, showing expansion in manufacturing sector ahead the Xmas holiday. The service industry also increased to 55.6 against 54.5 previously released, hiting a 14 month high.
“Private sector output growth in Germany accelerated further in November, partly driven by efficiency improvements and increased new order intakes, according to panel evidence” said Oliver Kolodseike, economist at Markit.
“In fact, the rise in new business was a particularly bright spot in the data set, with the respective pace of expansion the fastest in two years. Moreover, it looks as if businesses will remain busy in coming months: backlogs of work accumulated at one of the strongest rates over the past four-and-a-half years and companies raised their employment levels to the greatest degree since December 2011 in anticipation of higher new business”.
The data also show that the entire Eurozone recorded the fastest rates of growth in both employment and business activity for four and a half years in November, validating the Eurzone PMI increase from 53.9 in October to 54.4 in November. This is the fastest output expansion rate since May 2011, according to the preliminary flash reading by Markit.
However, France is one country among the EU nations that recorded the slowest rate in business activity for the past three months, partly due to weaker service sector and poor output in manufacturing sector even though there was a slight rise in new orders, the report shows.