German private-sector growth slowed in August, but remained robust overall, a survey showed on Tuesday, suggesting Europe’s biggest economy is set to keep on expanding in the summer months after it grew more than expected in the second quarter.
Markit’s flash composite purchasing managers’ index, which tracks the manufacturing and services activity that accounts for more than two-thirds of the German economy, edged down to 54.4 from 55.3 in July. This came in weaker than a Reuters consensus forecast for a reading of 55.0, but the headline figure was still comfortably above the 50 line that separates growth from contraction.
Services growth slows
The survey showed growth in the services sector slowed unexpectedly after it had picked up speed in July, while manufacturing also lost some steam in August following a strong performance in the previous months.
“Today’s survey results highlight that the German economy is continuing its uninterrupted upward trend in August,” Markit economist Oliver Kolodseike said.
For 2016 as a whole, the government expects the economy to expand by 1.7 per cent, on a par with last year which was the strongest growth rate in four years. – (Reuters)
