German Manufacturing Unexpectedly Expands as Services Accelerate

Photographer: Simon Dawson/Bloomberg

A manufacturing index based on a survey of purchasing managers rose to 50.3 from 48.6 in June, London-based Markit Economics said today. Close

A manufacturing index based on a survey of purchasing managers rose to 50.3 from 48.6... Read More

Close
Open
Photographer: Simon Dawson/Bloomberg

A manufacturing index based on a survey of purchasing managers rose to 50.3 from 48.6 in June, London-based Markit Economics said today.

German manufacturing unexpectedly expanded in July and services growth accelerated, signaling that the recovery in Europe’s largest economy is building momentum.

A manufacturing index based on a survey of purchasing managers rose to 50.3 from 48.6 in June, London-based Markit Economics said today. Economists in a Bloomberg survey predicted 49.2. A similar gauge for services rose to 52.5 from 50.4, compared with the median estimate of economists of 50.7. A reading of 50 is the dividing line between expansion and contraction.

The euro rose against the dollar after the report was published and was trading at $1.3250 as of 8:37 a.m. London time, up 0.2 percent from yesterday.

The Ifo institute’s index of German business confidence increased for a second month in June and unemployment unexpectedly declined. Factory orders, industrial production and exports slumped in May as overseas sales were curbed amid the 17-nation euro region’s struggle to emerge from recession and slower growth in China, Germany’s third-biggest export destination.

The Bundesbank said on July 22 that after a strong second quarter, helped by a rebound in industry and construction, signs of a slowdown in economic output are now appearing.

Separately today, an index of French manufacturing rose to 49.8 from 48.4, while a services gauge jumped to 48.3 from 47.2. Both measures exceeded economists’ estimates.

To contact the reporter on this story: Jeff Black in Frankfurt at jblack25@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.