Latest data released by Markit/BME - 23 November 2021
- Prior 57.8
- Services PMI 53.4 vs 51.5 expected
- Prior 52.4
- Composite PMI 52.8 vs 51.0 expected
- Prior 52.0
Much like the French readings earlier, we're seeing beats across the board for Germany as well with both manufacturing and services activity picking up from October.
Of note, manufacturing output is seen improving to a two-month high - same goes for services output. That offset some of the hit to new business and client demand, which was impacted by supply issues once again. Markit notes that:
"The flash PMI data for November point to a general levelling off the economic growth slowdown seen across the German private sector over the previous three months. Business activity continued to rise, with the rate of increase gaining some well needed momentum as manufacturers and services firms alike saw faster uplifts in output.
"Supply delays continued to weigh heavily on the performance of the German economy, however, with inflows of new work rising at a slower pace as clients held off on ordering due to delays. Export orders showed a more resilient trend, but nonetheless, overall new work increased at the weakest rate since February.
"Material shortages, combined with greater energy and wage bills, price hikes at suppliers and logistical issues led to an unprecedented rate of cost inflation in November, with German companies subsequently raising their own charges to a record degree. This subsequently knocked on to business confidence in November, with sentiment the lowest for over a year as many firms cited concerns around the pandemic, supply problems and price pressures.
"Overall, the flash PMI data point to a slightly improved trend for business activity, but supply delays and inflationary pressures remain a key cause for concern and are likely to weigh further on growth in the coming months, especially if these constraints further stifle demand."