Advanced Estimate for July

Activity in the services sector in Germany picked up in July, the one bright piece of fundamental data today. Manufacturing activity, though in expansion, was off its level in June, and German business confidence took a steep fall with the IFO Business Climate Index declining to 97.5 from 101.2. The slowdown in momentum seen throughout Europe is showing through in the data and will give the ECB pause as it fights inflation. The interest rate increase in June will only act to further restrain growth. In France, the services PMI fell to 47.0 from 50.1, showing the two way track that Germany is on compared to the rest of the Euro-zone.

Advanced Estimate for June

The services sector in Germany more or less remained firm despite continuting turmoil in credit markets. Input and output prices are both accelerating due to rising oil and commodities prices. 

Preliminary Release for May

Services in Germany took a hit in May, falling from 54.9 to 53.7, lower then expectations. Its just another sign that the German economy, which had been keeping the Euro-zone numbers higher with its growth offsetting weakness in countries like Spain and Italy, may be losing its steam. Higher credit costs and high inflation may keep domestic businesses and consumers from spending, while a higher Euro and a slowdown in the US is taking a bite out of exports. However, strong demand from emerging economies has helped offset some of the loss of demand for machinery exports. What today's data shows is that the 7.1% decline in Germany's DAX index since Nov. 23rd, may be catching up with industries such as finance industry. In addition to financial firms, consumer-related companies are also being pressured. Second quarter results for the German economy will need to be closely monitored to see how the Euro-zone's largest economy holds up when it seems that its losing some of its momentum. 

Final Version for April

The final version of German Services PMI saw the index climb .3 points from its preliminary release from April 23rd. It the fastest pace in 7 months, following March's 51.8 and February's 52.2. Services seem to have recovered well from January's dip into negative territory at 49.2. It will be important for the Euro-zone whether Germany continues to be able to grow during an environment of tight credit conditions which is currently slowing other economies like the US, UK, and Canada. For example, today's UK Services PMI revealed a sharp fall in April.

Capsule comment from April 23rd: "Germany private-sector economic activity in April posted its strongest expansion in seven months. The composite index, which combines manufacturing and services rose to 55.0 from 53.0 in March. The euro zone's largest economy seems to be weathering the global credit crunch and the appreciation of the euro. Growth in German services led the way as the PMI increased to 54.6 in April from March's 51.8. The consensus among economists was for the services PMI to decline.

Manufacturing reported the weakest level of activity so far this year, which may imply that the higher euro may be affecting German exports, weakening demand for new orders. "

Preliminary Release for April

Germany private-sector economic activity in April posted its strongest expansion in seven months. The composite index, which combines manufacturing and services rose to 55.0 from 53.0 in March. The euro zone's largest economy seems to be weathering the global credit crunch and the appreciation of the euro. Growth in German services led the way as the PMI increased to 54.6 in April from March's 51.8. The consensus among economists was for the services PMI to decline.

Manufacturing reported the weakest level of activity so far this year, which may imply that the higher euro may be affecting German exports, weakening demand for new orders. 

For February

Activity level in the services sector in Germany rose back above the 50 boom-bust level, handily beating economists expectations. It is another piece of news showing that the largest economy in the Euro-zone is having a better time of dealing with the US slowdown, and malaise in other parts of Europe. Services have held up well in the Euro-zone; it maintained its level from a preliminary estimate, which was also higher than the 50 level at 52.3.