BERLIN (Reuters) – German private sector activity grew for the second consecutive month, supported by the services sector, according to the HCOB/S&P Global purchasing managers survey published on Thursday.
The “flash” composite PMI rose to 52.2 in May, compared to 50.6 in April and a consensus of 51.0.
The 50 mark separates growth and contraction in activity.
“These figures give hope. The composite indicator suggests that growth will be solid,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
“The services sector in particular grew at a strong pace in May, for the third consecutive month.”
The indicator for the services sector increased to 53.9 in May, compared to 53.2 in April and a consensus of 53.5.
Industrial sector activity stood at 45.4 in May, compared to a consensus of 43.1 and 42.5 the previous month.
“The rebound in the manufacturing PMI index is positive, but the drop in sub-indexes for inventories of manufactured and final goods must temper this optimism,” underlines the economist.
Overall, hiring has picked up, with companies reporting stronger demand and more optimism.
(Report by Maria Martinez, French version Corentin Chappron, edited by Kate Entringer)
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