German S&P Global Composite PMI Flash (Aug) 51.0 vs. Exp. 51.3 (Prev. 51.3)

Output, new orders and export sales have all risen at their quickest rates since early-2022, which likely reflects some catch-up from the more subdued picture we saw a few months back at the peak of the uncertainty and spike in oil prices associated with the Middle East war, as well as the influence of increased defence spending filtering through. It still remains to be seen if this pace of growth can be sustained, not least in light of ongoing supply risks, but a notable strengthening of manufacturers' sentiment towards future output suggests that the upturn has legs. Services A second successive slight uptick in new business and a renewed rise in employment in the sector suggest that things could start to get better soon on the activity front. A slower rate of services output price inflation also bodes well for demand in the coming months."