Germany March final services PMI 56.1 vs 55.0 prelim

• Composite PMI 55.1 vs 54.6 prelim

The easing of COVID-19 restrictions sees German services activity sustain a strong business growth but expectations and confidence took a big hit amid the Russia-Ukraine conflict. Adding to that is the rates of cost and selling price inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term accelerating to new record highs, so that isn't really going to provide much comfort to the outlook. S&P Global notes that:

“Germany's service sector continued to see an upturn in business activity in March, with the latest PMI survey pointing to its best performance since last September amid the further relaxation of COVID-19-related restrictions. With manufacturing production coming under pressure from the fresh supply constraints that have resulted from Russia's invasion of Ukraine, the service sector provided a key support for overall economic activity in March.

"Hiring activity among services businesses also remained strong and even picked up slightly, helping to maintain a firm overall rate of employment growth at the end of the first quarter.

"That's really where the good news ends, however. Elevated levels of uncertainty, declining export demand and a squeeze on purchasing power from sharply rising prices all weighed on inflows of new business in March. These factors were compounded by concerns about the effects of supply-chain disruption on the economy, to leave services firms feeling a lot less optimistic about the outlook than just a few weeks ago.

"The surge in global commodity prices in recent weeks has exacerbated pre-existing cost pressures, resulting in the steepest increase in service sector operating expenses in almost 25 years of data collection. Services firms are increasingly passing on higher costs to customers, with average prices charged rising at a record rate in March, in what is another headwind to near-term growth prospects."