Latest data released by Markit/BME - 3 December 2020
- Composite PMI 51.7 vs 52.0 prelim
The preliminary report can be found here. Much like the rest of the region, the slump in business activity in November was at the quickest pace since May as tighter virus restrictions weighed on the economy overall.
For Germany, the marked drop in the services sector is offset by the robust manufacturing performance so that helped to alleviate some of the downside.
Markit notes that:
"The impact of Germany's new lockdown measures in November was clearly visible in the services PMI data, which showed the level of business activity down markedly and to the greatest extent since May. However, the results indicate a far shallower overall contraction compared to that seen in the spring, with the data showing a milder impact on activity outside of those sectors directly affected by the new lockdown restrictions, helped in part by ongoing strength in manufacturing.
"There was further encouraging news for the labour market in November, as signs of a pick-up in hiring in the service sector accompanied the recent news of a slowdown in factory job cuts. However, the increased use of the short-time work scheme across those sectors forced to close was evidenced by the latest survey results, which showed service sector cost pressures subsiding during the month.
"The extension of lockdown measures into December means it is going to be a difficult end to the year for the German economy, of course, for some sectors more than others. The recent progress on vaccines has helped brightened the outlook for businesses, though it still remains a long road to full recovery."
