June composite PMI 50.4 vs 52.4 in May (Il Sole 24 Ore Radiocor) - London , 03 Jul - In June, Germany's purchasing managers' index for the services sector fell to a three-month low of 53.1 from 54.2 in May, according to data released by S&P Global and Hamburg Commercial Bank.

The composite output index, a weighted average of services PMI and manufacturing output, also fell to a three-month low, dropping to 50.4 from 52.4 the previous month.

A reading below 50 signals contracting sector activity, while one above an expansion.

'The services sector is keeping Germany's economy afloat," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. "Despite a slight loss in momentum, activity in services continues to expand at a solid rate. New business is coming in steadily, and companies are still hiring, albeit more cautiously than in May.

"It's a bit worrisome that outstanding business has come down after having stayed more or less constant over the last two months. We are inclined not to over-interpret this figure as the slowing down of consumer price inflation and higher wage agreements are supporting the purchasing power of the people.

In addition, the European Football Championship, which already provided positive effects according to some respondents, will reach its 'hot phase' in July. In this context, new export business, which includes tourism, is trending up since May. Thus, we are optimistic that growth in the service sector will be maintained.".

AAA-Hob

(RADIOCOR) 03-07-24 10:05:06 (0218) 5 NNNN