Shrinkage in Commercial Activity in Germany Persists for Six Consecutive Months

Forex - Germany's economic contraction slightly improved in December, but commercial activities continued to shrink for the sixth month in a row. The HCOB Germany Composite Purchasing Managers' Index, compiled by S&P Global, rose to 47.8 in December from 47.2 in November, yet remained in the contraction zone. Economists had expected a PMI of 47.8 in December.

The services sector business activity index increased to 51.0 in December from 49.3 in November, surpassing the estimated 49.4. Meanwhile, the manufacturing index slightly worsened, declining to 42.5 from the previous month's 43.0, remaining far from levels indicative of growth. Analysts had anticipated a small increase to 43.3.

Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, stated, “This improvement in the services sector provides some hope that GDP may not have contracted in the last quarter of the year, balancing out the sharper decline in manufacturing output. The manufacturing sector hasn’t exactly been cheerful. Given all the negative news surrounding companies planning restructuring, this is certainly not a major shock.”