This month, activity in the German industry has plummeted. British market researcher Markit reported this on the basis of preliminary figures. Markit took the reduction into account, but the decline was much sharper than expected. French and European estimates were also lower than expected.
The index of purchasing managers for the German industry dropped to 44.7 against 47.6 a month earlier. A level above 50 indicates growth below which shrinkage occurs. Connoisseurs took into account 48 points.
The growth of the German services sector was slightly better than what was taken into account. The composite index in Germany was 51.5. It was less than 52.8, which was stipulated.
In France, there was a reduction in both industry and services. According to Markit, this decline was unexpected. The composite index of purchasing managers recorded the position of 48.7 against 50.4 a month earlier. In general, economists expected the position of 50.4, which would mean growth.
German and French contraction of the industry logically affected the European indicators. The Markit Industrial Indicator for the euro area 47.6 was less than the total 49.5. The European service sector has indeed shown growth. Level 52.7 was equal to the expectations of economists. The composite index for the eurozone was 51.3. Economists counted here 52.
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