Flash Germany Manufacturing PMI increased to 51.2 from 49.5 in November, what is a 2-month high, and above predicted incline to 50.4. However, Flash Germany Services PMI fell to 51.4 from 52.1 in November, what is a 17-month low. Analyst were anticipating raise to 52.6. The pace of expansion was in fact the weakest in one-and-a-half years and well below levels seen earlier in the year, when GDP grew 0.8%. The amount of new work placed with German companies declined again, suggesting that output growth may slow further at the start of next year, with the possibility of a downturn intensifying.
Overall, the data are consistent with only marginal GDP growth in the fourth quarter at best, with the average PMI reading in the latest three months the weakest since the second quarter of 2013. The possibility of a renewed downturn at the start of next year is clearly becoming more and more likely, especially if the survey data continue to disappoint.
After the figures, euro was pushed higher and is currently being traded slightly below 1.2480 level. Later today, Eurozone Manufacturing and Services PMI data will be released as well as German and Eurozone Economic Sentiment figures.
