BERLIN (Reuters) – German services activity grew in March at its fastest pace since last May as demand strengthened and boosted job creation, final S&P Global survey results showed on Wednesday. with purchasing managers.

The composite PMI index, which brings together the manufacturing and services sectors, rose to 52.6 in March after 50.7 in February and 52.6 in the first estimate. This acceleration was mainly driven by services, whose PMI index came out at 53.7 in March, against 50.9 in February. Manufacturing activity nonetheless posted growth, albeit modest.

“Germany’s services sector ended positively in the first quarter of the year, with the recovery in economic activity accelerating as demand continued to recover from the lull seen towards the end of last year.” , commented Phil Smith, managing partner at S&P.

Phil Smith notes, however, that it remains to be seen whether this will be enough to prevent a second consecutive quarterly contraction in German gross domestic product (GDP), which meets the technical definition of a recession.

“With business confidence stalled in March and new orders in industry still under pressure, modest economic growth is probably the best we can hope for in the next quarter,” he said.

The overall rate of input price inflation and the rate at which service providers raised their own prices declined but remained elevated, the survey also shows.

“Price increases in the services sector are easing, but despite this the inflation rate remained stubbornly high in March, suggesting lingering pressures on core prices and the prospect of further interest rate hikes. “, added Phil Smith.

(Report Maria Martinez; Claude Chendjou, edited by Blandine Hénault)

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