Germany’s services PMI in December
According to data provided by Markit Economics, the final Markit Germany services PMI (purchasing managers’ index) showed a solid rise in December 2017. The metric stood at 55.8 in December as compared to 54.3 in November 2017. The December reading met the preliminary market estimate of 55.6 and was the strongest expansion in services activity since December 2015.
Some key highlights of the December services PMI report include the following:
- Production output and volume showed a solid rise.
- New business orders and export orders improved at a stronger rate.
- Employment in the service sector also accelerated.
Performance of various ETFs in December
The iShares MSCI Germany ETF (EWG), which tracks the performance of Germany’s equity market, declined 0.6% in December 2017. However, the iShares MSCI Germany Small-Cap ETF (EWGS), which tracks the performance of Germany’s small-cap stocks, rose 2.7% during the month.
The strong performance in Germany’s (DAX-INDEX) services PMI was mainly driven by stronger domestic demand. Plus, the overseas client demand improved. Similarly, Germany’s manufacturing PMI reached a multi-decade high in that month with the help of robust client demand. All these indicators are signaling that the economy is growing at a healthy pace.
In the next part of this series, we’ll analyze the performance of France’s services PMI (EWQ) in December 2017.