German manufacturing activity accelerates in June
The steady growth path of Germany's economy continued at the end of the second quarter, with the Markit Flash Germany Composite Output Index posting 54.1. Despite falling slightly from May's 54.5, the index was broadly in line with the average over the current 38-month sequence of expansion and indicative of moderate growth. June data signalled an acceleration in new business growth at German private sector companies. Some panellists attributed the latest expansion to a positive economic environment, while others specifically commented on rising demand from overseas markets. Indeed, manufacturers reported the strongest increase in new export orders for almost two-and-half years.
Survey participants commented on higher new business from a range of different countries, including China and the US. Growth trends in both output and new business diverged by sector, however. In particular, slower expansions in the service sector contrasted with accelerated growth at goods-producers, with the Manufacturing PMI reaching its highest level since early-2014.