Latest data released by Markit/BME - 23 April 2021
All readings reflect two-month lows as the German economy loses some momentum in April, with services activity seen stalling. Supply shortages are cited as a reason for the light pullback in manufacturing production but output is still at healthy levels for now.
Markit notes that:
"The third wave of the pandemic has stifled progress in Germany's service sector, with April's flash PMI data showing activity close to stalling following the return to growth at the end of the first quarter. The country's manufacturing sector remains on a strong footing, though even here the data show growth being held back by supply problems.
"The imbalance of demand and supply across manufacturing supply chains continues to drive up businesses' costs, which are now rising at the fastest rate for more than a decade. However, while factory gate prices are increasing rapidly in line with strong demand for goods, services firms remain more cautious with their pricing, which somewhat limits the spillover to overall consumer prices. "There was good news on the employment front in April, as efforts by manufacturers in particular to expand capacity drove the fastest increase in private sector workforce numbers for two-and-a half years."
