Investing.com -- Germany’s private sector has experienced a contraction in business activity this month, according to a survey released on Wednesday.
This downturn has been influenced by difficulties in the service sector and uncertainty surrounding trade, although manufacturing firms have demonstrated some resilience.
The HCOB German flash composite Purchasing Managers’ Index (PMI), which is put together by S&P Global, dropped to 49.7 in April from 51.3 in March.
This is the lowest it has been since December, and it has once again fallen below the 50.0 threshold. This threshold is significant as it distinguishes growth from contraction.
Prior to the release of this data, analysts had predicted a reading of 50.4 for the PMI.
The actual result of 49.7 indicates a more significant contraction in Germany’s private sector than was initially anticipated.
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