BERLIN (Reuters) – Growth in Germany’s services sector slowed in August for the third consecutive month, a survey showed on Wednesday, in a fresh sign that Europe’s largest economy is losing steam.
The final services sector index from the S&P Global/HCOB Purchasing Managers’ Survey decelerated to 51.2 in August, from 52.5 in July and a preliminary estimate of 51.4.
The threshold of 50 separates growth and contraction of activity.
“Without growth in the private services sector, Germany’s economic situation would be quite bleak,” writes Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, noting that the sector’s resilience has helped offset recessions in manufacturing and construction.
“But that support is starting to wane,” he warned.
Employment fell for the second consecutive month, the survey showed, in contrast to the steady creation of jobs recorded during the first half of the year.
The August survey data otherwise show little change in the outlook for the year ahead.
The composite PMI, which includes services and manufacturing, fell to 48.4 in August from 49.1 in July, slightly below a preliminary reading of 48.5.
(Written by Maria Martinez; Claude Chendjou, edited by Kate Entringer)
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