Preliminary July services PMI 52.0 vs 53.1 in July (Il Sole 24 Ore Radiocor) - London, 24 Jul - In July, Germany's purchasing managers' index (PMI) for the manufacturing sector fell to a three-month low of 42.6 from 43.5 in June, according to preliminary data released by S&P Global and Hamburg Commercial Bank.

The manufacturing output index fell to 42.2 from 45.1 over the period, reaching a nine-month low.

The services sector PMI dropped to 52.0, a four-month low, from 53.1.

The composite output index, a weighted average of services PMI and manufacturing output, decreased to 48.7 in July from 50.4 the previous month, falling to a four-month low.

A reading above 50 signals expanding sector activity and a reading below 50 a contraction.

"This looks like a serious problem. Germany's economy fell back into contraction territory, dragged down by a steep and dramatic fall in manufacturing output. The hope that this sector could benefit from a better global economic climate is vanishing into thin air. With the composite PMI now below 50, our GDP Nowcast predicts that economic output will shrink by 0.4% in the third quarter compared to the second quarter.

While it is still early days and many data points are yet to come, the second half of the year is starting on a very weak note," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

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(RADIOCOR) 24-07-24 09:41:53 (0263) 5 NNNN