By Andreas Plecko
Dow Jones-the German economy grew slightly again in June after it has shrunk for the first time in May for five months. The leaders were the industry, and the first increase in order in over a year contributed to this. The collection index for production in the private sector – industry and service provider collected by S&P Global – improved to 50.4 out of 48.5 points in the previous month, as can be seen from the data of the first publication for the month. Economists surveyed by Dow Jones Newswires had only expected an increase to 49.0 points.
Above 50 points, the economy barometer signals growth, including a shrinkage. The purchasing manager index of the manufacturing trade rose to 49.0 out of 48.3 points in the previous month. Economists had expected a stand of 48.8. The index for the service sector put on 49.4 out of 47.1 points. The forecast had been 47.8.
“The valley sole has probably passed Germany’s processing business, because production has been increasing continuously for four months,” commented Cyrus de la Rubia, chief economist at the Hamburg Commercial Bank. “In the first half of this year, the economic output among manufacturers has grown. The PMI for industry is still slightly in the recessive area with 49.0 points, for example, because employment is further reduced, but the trend has been pointing up since the beginning of the year.”
The expert added that the order incoming had increased again and accelerated, so that the dynamics of the past few months could not only be traced back to preferred orders from the United States, where many companies had stocked up with goods to advance higher tariffs.
Link: https://www.pmi.spglobal.com/public/release/Pressreleases
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DJG/apo/hab
(End) Dow Jones Newswires
June 23, 2025 03:39 ET (07:39 GMT)