German private sector contracted at the fastest pace in six months in April, ending a four-month period of expansion, preliminary results of a survey by Markit Economics showed Tuesday.
The flash composite output index, that gauges activity in both manufacturing and services, fell to 48.8 in April from 50.6 in March. Readings above 50 indicate expansion of the sector while readings below 50 suggest contraction.
The manufacturing purchasing managers' index fell to a four-month low of 47.9 from 49 in March, suggesting further worsening of operating conditions across the factory sector. The manufacturing output index fell to a four-month low of 47.9 from 50 in March.
The services activity index fell to a six-month low of 49.2 in April from 50.9 in March.
Lower levels of private sector business activity reflected a decrease in new order volumes for the second successive month during April, Markit said.
The overall pace of contraction in new orders was the steepest since October 2012, largely driven by a marked decrease in new work received by service providers. Manufacturing new orders dropped at the fastest pace so far this year, the survey report said.
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