BERLIN (Reuters) – The slowdown in activity in Germany eased in November, with the manufacturing and services sectors falling less sharply than in previous months, preliminary results of the monthly S&P Global/HCOB survey showed on Thursday.
The composite PMI, which includes services and manufacturing, rose to 47.1 in November, its highest level in four months, compared with 45.9 in October and a consensus of 46.5.
The threshold of 50 separates contraction and growth in activity.
“A return to growth is plausible, and could materialize in the first half of 2024,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
Activity in the services sector fell for the third time in the last four months, but less sharply than in October, standing at 48.7 against a consensus of 48.5.
Upward pressures on wages and output prices in the services sector suggest that inflation is unlikely to decline significantly in the coming months.
The manufacturing PMI rose to a six-month high of 42.3 from 40.8 in October, also beating analysts’ expectations.
“The decline in new orders is easing in the manufacturing sector, which offers a glimmer of hope. This trend is supported by domestic and international orders,” Cyrus de la Rubia said.
He added that current figures suggested that German economic output in the fourth quarter would contract by 0.7%, compared to a previously forecast 0.9%.
(Report by Riham Alkousaa; Corentin Chappron, edited by Kate Entringer)
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