Germany Loses Momentum as Services Slowdown Weighs on Economy
- Composite purchasing managers’ index drops to 50.8; est. 53.3
- Services sector expanded quite strongly through second quarter
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Germany’s economic activity lost much more momentum than anticipated in June, driven by a slowdown in services and sustained weakness at the country’s factories.
While the private-sector economy grew for a fifth straight month, the rate of expansion was the weakest since February, according to business surveys by S&P Global. At 50.8 — weaker than predicted by economists in a Bloomberg survey — it stayed above the 50 level that separates expansion and contraction. The manufacturing gauge has been below that line since July.