BERLIN (Reuters) – Activity in Germany’s services sector remained strong in May, pointing to a return to growth in Europe’s biggest economy, the S&P Global survey showed on Monday.
The HCOB PMI services index returned to 57.2, the highest in more than a year, after 56.0 in April and 57.8 in the first estimate.
“The services sector should ensure that the recent technical recession in Germany is limited to two quarters and that the economy returns to growth in the second quarter,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
“Given the importance of the services sector to GDP, the weakness in the manufacturing sector should be more than offset,” he added.
New export orders rose for a third consecutive month and at the fastest rate since this data began to be calculated in 2014.
The HCOB PMI composite index, which combines services and manufacturing, fell to 53.9 from 54.2 in April. The “flash” estimate released last month had it at 54.3.
(Miranda Murray, Laetitia Volga, edited by Blandine Hénault)
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