German Private Sector Growth At 5-Month High

(RTTNews) - Germany's private sector grew the most in five months in August driven by the upturn in manufacturing output, purchasing managers' survey data from S&P Global showed on Thursday.

The flash HCOB composite output index posted 50.9 in August, up from 50.6 in July. This was the highest score since March and was also above forecast of 50.2.

A reading above 50.0 indicates expansion in the private sector.

There was a solid acceleration in manufacturing output, while service sector nearly stagnated in August. Growth was driven by production, which increased at the fastest pace in almost three-and-a-half years.

The manufacturing Purchasing Managers' Index climbed to a 38-month high of 49.9 from 49.1, while it was expected to fall to 48.8. Meanwhile, the services PMI dropped more-than-expected to 50.1 from 50.6 in July. The reading was seen at 50.3. "Germany's economy has been growing throughout the summer so far, and the pace of expansion has even picked up slightly," Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.

"While we're talking about modest gains here, this trend signals resilience - considering the headwinds like U.S. tariffs, geopolitical uncertainty, and relatively high long-term interest rates," de la Rubia added.