German flash manufacturing PMI hits 33-month lows of 51.5 in Dec

German business activity grew at the weakest pace in thirty-three months this month, the latest manufacturing activity report from IHS/Markit research showed.

German manufacturing purchasing managers index (PMI) dropped in December, arriving at 51.5 while services PMI fell to seven-month lows of 52.5 versus 53.3 last.

The IHS Markit Flash Germany Composite Output Index hit forty-eight-month lows at 52.2 in December, from November’s 52.3.

Key comments from Phil Smith, Principal Economist at IHS Markit:

“The PMI data disappointed again in December, indicating the continuation of only a modest rate of underlying growth across Germany’s private sector. Furthermore, with new orders close to stalling in December and firms reporting reduced optimism towards the outlook, there’s a lack of momentum heading into the New Year.”

“It's a stark contrast from the situation this time last year. Reports of an economy close to overheating have been supplanted by concerns about an increasingly uncertain political backdrop, trade wars and a struggling autos industry.”