By Andreas Plecko
Dow Jones-The business activity in the German service sector weakened in August. The shopping manager index determined by S&P Global for the sector fell to 49.3 of 50.6 points, as can be seen from the final data for the month. Economists had predicted a stand of 50.1. For the time being, a value of 50.1 was determined for August. In the new orders, new losses were incurred, and employment also stagnated.
With 49.3 points, the final index again noted under the neutral reference line of 50 points that separate growth of shrinkage. However, the current value only signals a minimal decline.
Overall, growth in Germany’s economy also slowed down in August. The collection index for production in the private sector – industry and service provider – fell to 50.5 out of 50.6 points in the previous month. Economists had expected an increase to 50.9.
“The economic development is slow and growth in the overall economy was only marginally positive over the summer months,” commented Cyrus de la Rubia, chief economist at the Hamburg Commercial Bank. “Obviously, the new federal government has so far not managed to get the economy away from the crawling and back on the overtaking lane. In fact, companies in the service sector have even slightly reduced their business in August.”
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(End) Dow Jones Newswires
September 03, 2025 04:11 ET (08:11 GMT)