Germany has underlying strength as its private sector rebounds
Despite figures showing a cooling trend — especially in manufacturing, largely due to Trump’s tariffs — some forecast 0.5% growth in its second quarter
Berlin — Activity in Germany’s private sector rebounded in June after slowing for four months in a row, a survey showed on Friday, suggesting Europe’s largest economy had underlying strength despite losing steam on fears of restrictive trade policies. IHS Markit’s flash composite purchasing managers index (PMI), which tracks the manufacturing and services sectors that account for more than two thirds of the economy, rose to a two-month high reading of 54.2 in June from 53.4 in May. An index measuring manufacturing activity fell to 55.9 from 56.9 in May, the lowest reading in 18 months. The index for services rose to 53.9 from 52.1 in May, a three-month high. The figures reflected a cooling trend in the manufacturing sector that started this year after an all-time high reading in December 2017. Economists have attributed this partly to the increasingly protectionist policies of US President Donald Trump, which have clouded the outlook for Germany’s export-dependent manufacturers. "Th...
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