Business activity in the private sector of Germany continued to decline in May

Investing.com – According to the data published on Wednesday, the growth in production in Germany’s private sector slowed to the lowest level in a year and a half in May.

An important report intensified fears about the situation in the largest economy of the eurozone, and also worsened the forecasts regarding the possibility of tightening monetary policy from the European Central Bank.

Composite index of business activity (PMI) from Markit in Germany, which measures the results of activity in the manufacturing and service sectors, in May fell to 53.1 – the minimum value for 20 months. In April, the value of this index was 54.6.

Economists predicted that the value of this index would be 54.7.

The preliminary value of the index of business activity in the service sector (PMI) of Germany this month fell to 52.1 after a value of 53.0 in April.

Analysts predicted that in May the value of this index will be 53.1.

The index of business activity in the manufacturing sector (PMI) of Germany this month fell to 56.8 against the revised value of 58.1 for April.

Analysts had expected in February the reduction of this figure to 57.9.

If the value of the PMI index is greater than 50.0, it means economic growth, if lower – a decline.

Commenting on the report, leading economist Markit Phil Smith said: “The weak growth in the number of new orders and the further decline in business confidence indicate a significant slowdown in economic growth compared with the end of 2017”.