German Business Activity Shows Signs of Growth in December

In a recent report released by S&P Global and Hamburg Commercial Bank, it was revealed that the German services sector experienced growth in December. Despite this positive development, the report also pointed out an 'intensification of price pressures,' indicating that challenges persist even as the sector begins to rebound.

Understanding the Numbers

The Services PMI Business Activity Index reached 51.2 in December, marking a 1.9 index point increase from the previous month. Meanwhile, the Composite PMI Output Index, which measures both services and manufacturing business activity in Germany, saw a 0.8 index point rise on a monthly basis, ending at 48.0 in October.

Expert Insights

Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented on the resilience of services activity despite the ongoing manufacturing recession. 'Historically, services activity has closely mirrored manufacturing output,' he noted, adding that the services sector is becoming 'more independent' of industrial activity. This shift underscores the growing importance of the services sector in stabilizing the economy.