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22.01.202107:48:00UTC+00German Private Sector Activity Expands At Slowest Pace In 7 Months

Germany's private sector growth slipped to a seven-month low in January as the Covid-19 control measures depressed activity, flash survey results from IHS Markit showed on Friday. The flash composite output index fell to 50.8 in January from 52.0 in December. However, the reading was above the economists' forecast of 50.3.

Services activity dropped for the fourth straight month and manufacturing output remained in growth territory though it dipped to a five-month low.

The services Purchasing Managers' Index came in at 46.8, down from 47.0 in the prior month. The expected level was 45.3.

At the same time, the manufacturing PMI dropped to a 4-month low of 57.0 from 58.3 in December, but was above the forecast of 57.5.

"The German economy has made a slow start to the year, and the extension of the current containment measures until at least mid-February means this looks like being the picture for several more weeks to come," Phil Smith, an associate director at IHS Markit said.



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