German business activity ends year in contraction territory, PMI shows

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German business activity ends year in contraction territory, PMI shows

^{Published on 2024-12-16 07:20:56 - Reuters}

Germany's economic downturn eased slightly in December but business activity still contracted for a sixth month running, according to a survey published on Monday.

The German economy is showing signs of recovery as business activity ended the year in contraction territory, according to the HCOB German Flash Composite Purchasing Managers' Index (PMI) which rose to 47.4 in December from November's 47.1. Despite still being below the 50 threshold that separates growth from contraction, this slight increase suggests a potential stabilization. The services sector PMI improved to 49.3 from 48.4, while manufacturing PMI, although still in contraction, rose to 43.1 from 42.6. This indicates a less severe downturn in manufacturing. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, noted that while the economy is not out of the woods, the data reflects a lessening of the contraction's severity, hinting at a possible turnaround in the near future. However, challenges remain, particularly in the manufacturing sector, where new orders continue to decline, though at a slower pace.

Read the Full Reuters Article at:
[ https://www.reuters.com/markets/europe/german-business-activity-ends-year-contraction-territory-pmi-shows-2024-12-16/ ]

N@N

German business activity ends year in contraction territory, PMI shows