German flash manufacturing PMI rises to 44.5 in April, misses estimates (EUR drops)

German manufacturing activity saw a minor rebound in April, the latest manufacturing activity report from IHS/Markit research showed this Thursday.

The German manufacturing purchasing managers index (PMI) remained into contraction territory and arrived at 44.5 versus 45.0 expected and 44.1 previous. Meanwhile, services PMI rose to a seven-month high level of 55.6 as against previous months reading of 55.4 and 55.1 anticipated.

The IHS Markit Flash Germany Composite Output Index hit 2-month highs of 52.1 in April, up from 51.4 booked in March. 

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

““The overall picture for Germany’s private sector has changed very little according to April’s flash data, with strong growth across the services economy continuing to counteract the export-led weakness in manufacturing. Though the PMI has ticked up from March’s 69-month low, it’s merely signalling the same modest rate of underlying growth as seen on average over the opening quarter of the year.”

“Slight upticks in the manufacturing indices for output, new orders and employment saw the headline Manufacturing PMI post its first rise in nine months, albeit with the latest reading nonetheless the second-lowest since mid-2012. Amid reports of a declining car industry, strong competition across Europe and generally subdued global demand, the data showed another steep drop in German goods exports and the lowest confidence among manufacturers for six-and-a-half years.”