German private sector activity hits 7-month high

FXStreet (Mumbai) - The preliminary Markit German Composite Purchasing Manager’s Index rose to a 7-month high of 54.3 in February, beating the estimate of 54.00, and up from January’s 54.00.

The services activity index rose to 5-month high of 55.5 from January’s 54.00, while the manufacturing activity index stayed unchanged at 50.9. The data revealed new orders with private sector companies rose for the second-consecutive month. Private sector employment in Germany rose for the sixteenth consecutive month in February.

Meanwhile, input costs fell for the third consecutive month due to reduced oil and fuel prices. Despite falling input costs, companies raised their prices charged for goods and services in February.

As per Oliver Kolodseike, Economist at Markit and the author of the Flash Germany PMI, “The German economy looks set to continue surfing on a wave of economic wellbeing heading further into 2015, after the country’s GDP rose by 0.7% at the end of last year. While low oil prices, a weaker euro and ECB quantitative easing should help boost economic growth, some uncertainties remain, including the debt crisis in Greece.”

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