Preliminary June services PMI 53.5 vs 54.2 in May (Il Sole 24 Ore Radiocor) - London , 21 Jun - In June, Germany's purchasing managers' index for the manufacturing sector fell to a two-month low of 43.4 from 45.4 in May while that for the services sector also fell to a two-month low, decreasing to 53.5 from 54.2 the earlier month, according to preliminary data released by S&P Global and the Hamburg Commercial Bank (HBOC).

The manufacturing output index fell to a three-month low of 44.9, down from 48.9 in May, while the composite output index, a weighted average of services PMI and manufacturing output, was at a two-month low of 50.6, down from 52.4 the previous month.

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

"What a sharp dip at the end of the second quarter," said Cyrus de la Rubla, chief economist at Hamburg Commercial Bank. "After showing some promising signs of bouncing back, the manufacturing sector hit a wall and started moving in the opposite direction in June. The market consensus had assumed that the headline manufacturing PMI would rise by one point to 46.4, but instead it fell by two points to 43.4. The production slump is pretty sobering, but what's even more concerning is that new orders are plummeting at a much faster rate. Last month's numbers were already troubling, but June's figures paint an even grimmer picture. The HCOB Composite Output Index is mainly dragged down by manufacturing production. If you use the composite index for a simple regression to estimate GDP in the second quarter, you now get a marginal decline in economic output instead of our prior estimate of slight growth.".

AAA-Hob

(RADIOCOR) 21-06-24 09:43:21 (0214) 5 NNNN