FX.co ★ Germany Private Sector Growth Strongest In A Year

Germany's private sector experienced its briskest expansion in a year this May, as revealed by the latest flash survey from S&P Global on Thursday.

The preliminary HCOB Composite Output Index climbed to 52.2 in May, exceeding expectations of 51.0 and notably up from 50.6 in April. An index score above 50.0 signifies growth in the private sector. This latest figure marks the highest level since May 2023.

The service sector continued to drive overall growth, while the manufacturing sector saw a notable reduction in its negative impact midway through the second quarter, according to the survey findings.

The Services Purchasing Managers' Index (PMI) reached an 11-month peak at 53.9, compared to 53.2 in April, surpassing economists' predictions of 53.5.

Simultaneously, the Manufacturing PMI increased to 45.4 from 42.5 in the previous month, outperforming the anticipated reading of 43.4.

"These figures provide optimism," said Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank.

"Our GDP Nowcast projects a 0.3% increase in GDP for the second quarter compared to the first quarter," Rubia added.