POST Online Media Lite Edition



 

Modest growth of German economy despite slump in exports

Christian Fernsby |
‘Flash’ PMI survey data from IHS Markit indicated a modest expansion of German private sector business activity in February, with the rate of growth little-changed from that recorded at the start of the year.

Article continues below



Topics: GERMAN    ECONOMY    EXPORT   

Notably, the manufacturing sector moved closer to stabilisation, with survey data indicating slower falls in output, new orders and employment.

This was despite reports from goods producers of a slump in both exports and sentiment, linked to the impact of the coronavirus on activity in China and the wider region.

The Flash Germany Composite Output Index registered 51.1, down only slightly from January’s five-month high of 51.2.

Growth of output was driven by the service sector, where business activity continue to rise at solid pace, albeit one that was slower than January’s five-month high.

The rate of decline in manufacturing production meanwhile eased for the fourth time in the past five months to the weakest since May last year.

There were some reports from surveyed firms of a lack of availability of inputs weighing on output levels.

February saw the headline Flash Germany Manufacturing PMI climb from January’s 45.3 to a 13-month high of 47.8.

Almost half of the index’s month-on-month gain was attributable to a deterioration in supplier delivery times, which panellists predominantly linked to coronavirusrelated disruption in China.

That said, there were also slight positive influences on the headline manufacturing PMI from the output, new orders, employment and stocks of purchases components, which all exhibited slower rates of decline.

Latest data indicated signs of renewed weakness in new export orders across both manufacturing and services.

After nearing stabilisation at the start of the year, overall inflows of new business from abroad fell markedly and at the fastest rate for three months in February.

Total new orders meanwhile rose for the second month in a row, buoyed by stronger domestic demand, though the rate of growth was only modest and slower than in January.

Employment across Germany’s private sector rose marginally in February, as job creation at service providers continued to offset staff cuts in manufacturing.

That said, the pace of employment growth in the service sector was at a 21-month low.

Concerns about the impact of the coronavirus on supply chains and the health of the global economy were reflected in a drop manufacturers’ expectations for output over the next 12 months.

The degree of optimism in the goods-producing sector was down from a 17-month high in January and fell further below the level seen in services, which likewise ticked down from the previous month (albeit falling only slightly).

That said, in both cases sentiment remained well above the lows seen in the second half of last year.

On the price front, February saw average prices charged for goods and services rise at the slowest rate for three-and-a-half years.

Behind this was a combination of a moderation in service sector price inflation to a 31-month low and the deepest cuts to factory gate charges for more than ten years.

By contrast, cost pressures faced by German businesses showed further signs of picking up from the lows seen at the end of 2019.

Input price inflation ticked up for the second month running in February to the highest since June last year.

Data at the sector level showed another steep rise in service sector costs, while the rate of decline in manufacturing purchase prices was the weakest seen for eight months.


European prosecutors bust €2.2 billion VAT fraud scheme

 
The European Public Prosecutor's Office (EPPO) announced that it uncovered the biggest cross-border VAT fraud scheme ever investigated in the EU worth an estimated €2.2 billion.
 
 

Latest

Poland: Inflation comes in at highest level since December 1996 in October
Brazil's primary budget surplus $5.8 billion
Milk powder market size market to reach $65.3 billion
Africa needs $190bn annual investment to meet energy demand

NEWS

Transnet diesel thieves stopped

U.S.: More than 40 million under threat for severe storms, tornadoes could happen
Poland: Criminal group extorted money making advantage of COVID situation
UK: Christmas chaos ahead as Wiltshire parking wardens announce further strikes
Italy: 8 dead, several still missing after deadly Ischia mudslide
South Korea issues return-to-work order to truckers on strike
 

BUSINESS

Thank you, inflation: Record Cyber Monday spending

One in four U.S. workers still fear catching COVID at work, modest winter surge expected
No vessels left Ukrainian ports on November 28 due to adverse weather
Swedish nuclear reactor to be taken off-grid for repairs
UN and ILO must urgently intervene as South Korea weighs forcing striking drivers back to work, says ITF
More internationally educated family doctors on the way to British Columbia
 

Trending Now

WHO updates emergency use listing for Novavax Nuvaxovid COVID-19 vaccine

Transnet diesel thieves stopped

Brazil's primary budget surplus $5.8 billion

Africa needs $190bn annual investment to meet energy demand


POLITICS

New York: Historic arts funding to record number of artists and organizations

Macron: U.S. gas 3-4 times more expensive for us, those are double standards
Tánaiste announces major change for small Irish companies
Commission approves €557 million German support to compensate Deutsche Bahn
Belgian government offers one-off tax-free bonus
Health minister discusses cooperation with French companies for manufacturing in Libya
 

Today We Recommend

One in four U.S. workers still fear catching COVID at work, modest winter surge expected


Highlights 

HSBC to sell Canadian unit to Royal Bank of Canada for $10.1 billion

Apollo Endosurgery to be acquired by Boston Scientific, enterprise value $615 million

AstraZeneca to acquire Neogene Therapeutics for up to $320 mln


COMPANIES

HSBC to sell Canadian unit to Royal Bank of Canada for $10.1 billion

Apollo Endosurgery to be acquired by Boston Scientific, enterprise value $615 million
Sibanye-Stillwater begins construction of lithium hydroxide refinery in Finland
Bechtel to build Intel's semiconductor manufacturing facilities in Ohio
Biocytogen Pharmaceuticals enters antibody agreement with ADC Therapeutics
BT announces plan for pay rise of up to 16% for all but highest paid
 

CAREERS

Former UK CMA CEO Andrea Coscelli to join Keystone

US Foods appoints Dave Flitman as CEO
G Mining Ventures appoints Carlos Vilhena to board
Criterium Energy appoints David Dunlop as director
Arthex Biotech appoints Frédéric Legros as chairman
Promontory Therapeutics appoints Stanley J. Musial as CFO
 

ECONOMY

Poland: Inflation comes in at highest level since December 1996 in October

Brazil's primary budget surplus $5.8 billion
Switzerland's GDP grew by 0.2% in Q3 of 2022
Mexico's exports grow 19.5 pct
Trade between Bulgaria, North Macedonia to exceed EUR 1 Bln in 2022
EU trade with Indo-Pacific region
 

EARNINGS

Natuzzi Q3 revenue increased 14.5%

CMA CGM Q3 revenue $19.9 billion
G. Willi-Food Q3 sales increased by 16.6%
Deere Q4 net income $2.246 billion
Nordstrom Q3 net loss $20 million
VMware Q3 revenue $3.21 billion
 

OP-ED

Micromanaging is the worst enemy of efficiency and teamwork

Niger set to monetize massive gas reserves through Saharan natural gas pipeline
Putting the brakes on EV folly that choked the market
Oil discovery in Kavango Basin may mean huge benefits for Namibians
Cape Town and Dubai battle over Africa's energy future
Is America going to lose its superpower status?
 

AGRIFISH

Milk powder market size market to reach $65.3 billion

Colombian minister announces short and medium-term measures to help rural producers affected by winter weather
Third stage of vaccination against classical swine fever starts in Brazilian state Alagoas
Australia's fish stocks stable and steady
Australia pledges AUD 2 million to WTO Fisheries Funding Mechanism
Pesticide sales jump by 17% in Switzerland
 

LEADERSHIP

Corporate duty waivers limit organic company growth and innovation

Women buy from women, men buy from women and men
How employee opinion impacts CEO dismissal
Keeping it in family can be good news when it comes to CEOs
Over a third of office workers are hybrid 'misfits'
Proxy advisers have inherent incentive to create controversy, study shows
 

CRIME

European prosecutors bust €2.2 billion VAT fraud scheme

Meta Ireland fined 265 mln euros for data breach
Ukraine fines Engie, Shell subsidiaries over Nord Stream 2
New Zealand fines Southland fishing company $40,000
Italy's antitrust fines Edison Energia 3.8 mln euros over unfair practices
FTC secures monetary judgment in deceptive energy savings claims case
 

Magazine

TRAVEL

Weather-resistant ArtWalk Downtown Billings, Montana

Dual branded Courtyard and Residence Inn by Marriott Hotel opens in Montreal
Candlewood Suites Hotel opens in Aberdeen, Md.
Mount Roraima, Venezuela, 7,671 feet above the forest floor
Llao Llao Resort, an exclusive resort in the middle of nowhere
Abu Dhabi welcomes visitors to discover experiences at their own pace
 

SEA, LAND, AIR

New colorful Porsche 718 Style Edition models

2023 Toyota Prius Prime, solar panel roof and reliability
Volvo EX90, a car with updates
Cessna Citation CJ4 Gen2 jet, pursue your business goals while enjoying journey
GMC first Sierra EV marks turning point
BMW M2, fast beast in small package
 

DESIGN

Patchwork carpets, vintage Persian carpets made with unparalleled skill

Real life wallpapers, perfectly executed
A. Lange & Söhne, men's watches with true Saxonian DNA
Nella Vetrina, luxurious Italian designers bathroom vanities and furniture
Karastan rugs, durable and beautiful
Leather bags for every occasion and every life style
 

GADGETS

Take Elektor Fortissimo and make your own high-end amplifier

RangeXTD, a Wi-Fi extender that actually works
Monitor II A.N.C. headphones, iconic Marshall sound
Zebra TC15, a clever mix of a mobile phone and a computer for business use
Bathroom speakers will make your relaxing even better
NAD 399 amplifier, highly efficient and remarkably powerful
 

HEALTH

WHO updates emergency use listing for Novavax Nuvaxovid COVID-19 vaccine

Strong recommendation for pyronaridine-artesunate in revised WHO Malaria Treatment Guidelines
Pakistan launches anti-polio vaccination drive to inoculate 13.5 mln children
Ibuprofen and similar NSAIDS can be associated with hastened progression of osteoarthritis symptoms
Virgin Islands community encouraged to prevent antimicrobial resistance
Shionogi seeks Japan approval for COVID-19 vaccine
 

MEANTIME

Astrophysicists hunt for second-closest supermassive black hole

New European supercomputer inaugurated in Italy
European Space Agency presents new generation of astronauts
NASA selects Rocket Lab to launch TROPICS mission
World's heaviest flying bird heals itself with plants used in traditional medicine
James Webb Space Telescope reveals an exoplanet atmosphere as never seen before