BERLIN (Reuters) – The slowdown in Germany’s economy accelerated in November, with private sector activity falling for the fifth straight month and at its fastest pace since February, an S&P Global/HCOB survey showed on Friday.
The S&P Global/HCOB Purchasing Managers Survey PMI composite index, which includes services and manufacturing, fell to 47.3 from October’s 48.6 and the consensus 48.6.
Services sector activity also deteriorated in November, with the index unexpectedly falling to 49.4 from 51.6 in October.
The threshold of 50 separates growth and contraction of activity.
“Until recently, the German economy was somewhat stabilized by the services sector, which compensated for the sharp decline in manufacturing. This is no longer the case,” notes Cyrus de la Rubia, chief economist at the Hamburg Commercial Bank.
The German economy has been penalized by intensifying foreign competition, weak demand and the slowdown in its industry. Additionally, a budget dispute brought down the ruling three-party coalition, adding to political uncertainty.
“The announcement of early elections in Germany on February 23 does not help matters,” adds Cyrus de la Rubia.
The manufacturing index improved slightly from 43.0 the previous month to 43.2 but remains far from the expansion zone.
(Reporting by Rachel More, Corentin Chappron, editing by Kate Entringer)
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