Economic Buzz: German Private Sector Economy Slows To 20-Month Low In May

Latest business survey data showed a further slowdown in the rate of growth of Germanys private sector economy in May. Business activity rose at the weakest pace for over one-and-a-half years, with the month also seeing slower increases in both new orders and employment. Business confidence towards the outlook meanwhile slipped to its lowest since November 2016. The IHS Markit Flash Germany Composite Output Index fell to a 20-month low of 53.1 in May, from Aprils 54.6. The IHS Markit Flash Germany Manufacturing PMI registered 56.8 in May, down from 58.1 in April and its lowest reading since February 2017. Total new business in Germanys private sector rose at the slowest rate for almost three years in May. The service sector saw inflows of new work increase only modestly, with the pace of growth easing for the fourth time in as many months to the weakest since June 2015.