The Markit Economics report for Germany (EWG) gave clear signals of acceleration in business activity. The Flash Germany Composite Output Index for June rose to 54.0 from 52.6 in May. Manufacturing activity rose from 51.1 in May to 51.9 index points in June.
Plus, service sector activity showed strength with a 1.2–index point rise, up from a 53.0 reading in May to 54.2 in June. All readings beat investors’ expectations, which stood at 52.7, 51.2, and 53, for the composite, manufacturing, and services PMI, respectively.
The second quarter’s average composite reading of 53.6, however, stands short of the first quarter average of 54.2. Moreover, growth in new orders slowed in June, affecting businesses in Germany. American firms such as ExxonMobil (XOM), General Motors (GM), Ford (F), and General Electric (GE) have invested heavily in their German operations.
Markit Economics’ June readings are preliminary estimates, with the final readings scheduled to be released on July 1.
The Markit Flash France Composite Output Index read 53.4 in June against May’s 52.0. The Manufacturing Output Index stood at 50.0 in June against May’s 48.6, while the Eurozone Manufacturing PMI came in at 50.5 in June against May’s 49.4.
The Services Activity Index rose 1.3 index points from May’s 52.8. Again, June’s readings are preliminary estimates of Markit Economics, with the final readings scheduled to be released on July 1. For France, the estimates are based on data collected between June 12–June 22.
PMI manufacturing readings also came in on June 23 for China and Japan, which we will discuss in the next article.