Germany Services PMI in January
According to data provided by Markit Economics, the final Germany Services PMI (Purchasing Managers’ Index) showed stronger improvement in January 2018. It was 57.3 in January compared to 55.8 in December 2017. It beat the preliminary market estimate of 57. It was the strongest expansion in services activity since March 2011.
The improvement was mainly due to the following:
- Production output and volume showed a stronger improvement in January 2018 compared to December 2017.
- New business orders and export orders improved at a higher rate in January 2018.
- Employment in the services sector rose the most in nine months.
Performances of ETFs in January
The iShares MSCI Germany (EWG), which tracks the performance of Germany’s equity market (DAX-INDEX), improved 6% in January 2018. The iShares MSCI Germany Small-Cap (EWGS), which tracks the performance of Germany’s small-cap stocks, rose 7.1% that month.
Stronger improvement in services activity in January was mainly due to a solid rise in the output of hotels, restaurants, rentals, telecommunications, and postal services. However, January’s manufacturing PMI showed weaker improvement, mainly due to weaker domestic demand in the manufacturing sector.
In the next part of this series, we’ll analyze the France Services PMI (EWQ) in January 2018.