Germany's service sector growth hits fastest pace in 14 months
Business activity in Germany rose at its fastest pace in over a year in November, data released on Thursday showed.
Markit’s final Germany services business activity index rose from 54.5 in October to 55.6 last month, the fastest rate of expansion in 14 months, while the index tracking new orders at German service providers expanded at the fastest pace in four and a half years.
Meanwhile, the final Germany composite output index – which measures the combined output of the manufacturing and service sectors – rose from 54.2 in October to 55.2, marking the strongest rate of growth in output since March.
Mirroring the trend for activity, new business placed with German service sector companies also expanded at a faster pace, the survey compiler added, indicating the rate of growth in new business was the most marked since June 2011.
Improved liquidity and increased marketing efforts were the main factors behind the surge in new businesses.
German service providers raised their payroll numbers further during the month, while the rate of job creation was the weakest in three months, but remained well above the long-run series average.
“The service sector PMI numbers follow improved manufacturing figures, thereby adding to signs that Germany’s economy is set to post another quarter of moderate and possibly slightly stronger growth, after gross domestic product rose 0.3% in the third quarter,” said Markit’s economist Oliver Kolodseike.