Germany Markit Flash purchasing managers index (PMI) fell to 47.3 in July, down from 48.1 in June. This represents the sixth straight month of declines.A reading below 50 signals contraction. So, this number only intensifies worries that Europe’s largest economy may be slipping into recession.
The manufacturing component slipped to 43.3, missing expectations for 45.0.
The services activity component fell to 49.7, missing expectations for 50.0.
“July’s survey highlights that German business conditions are far less healthy than those seen during the first half of 2012, especially across the manufacturing sector where new export orders fell at the fastest pace for over three years,” wrote Markit economist Time Moore. “A solid overall drop in output during July represents the worst start to any quarter since Q2 2009. Moreover, an accelerated decline in new work means that the stage could well be set for a steeper drop in GDP than the 0.2% fall recorded at the end of 2011.
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