German business activity grows again after eight months – provisional PMI

BERLIN, Feb 21 (Reuters) – German economic activity returned to growth in February for the first time in eight months, helped by easing supply bottlenecks and improving demand under underlying, according to a preliminary investigation published on Tuesday.

The S&P Global Composite Purchasing Managers’ Index (PMI) rose to 51.1 in February from 49.9 in January, beating analysts’ expectations for a reading of 50.4.

February marked the first time since June that the indicator was above the 50 level that indicates growth in activity.

The index measures the services and manufacturing sectors, which together make up more than two-thirds of Europe’s largest economy.

The services sector posted slight growth for the second consecutive month, rising to 51.3 from 50.7 in January, in line with analysts’ expectations for a reading of 51.0.

The manufacturing sector, for its part, fell for the third consecutive month, to 46.5 from 47.3, remaining in contraction territory for the eighth consecutive month and below the expected reading of 48.0. However, the production sub-index rose for the second month in a row, to 51.3 from 50.7 in January.

However, the production sub-index broke through the 50 mark, standing at 50.6, marking growth for the first time since May.

“Phil Smith, associate chief economics officer at S&P Global Market Intelligence, said: ‘It is encouraging that the increase in trading activity has affected all sectors. “

“However, while the rebound in activity in the services sector was linked, at least in part, to demand, the increase in production in the manufacturing sector was almost exclusively due to a substantial reduction in supply bottlenecks. bottleneck in the supply chain, which has simply allowed producers of goods to catch up on backlogs,” he added.

(Reporting by Miranda Murray; Editing in Spanish by Flora Gómez)