In August, economic activity in Germany’s services sector saw an expansion, albeit at a slightly weaker pace than the previous month, with businesses which had been hit by coronavirus induced COVID-19 lockdowns catered to pent-up demand.
On Friday, as per the results of a survey released on Friday, IHS Markit’s final PMI services index found that activity in the sector had fallen to 60.8 from 61.8 in July.
The composite PMI index, which comprises both the services and manufacturing sectors, fell to 60.0 from 62.4 in July, reflecting continuation in the recovery of Germany’s manufacturing sector.
“The service sector followed up July’s record performance with another sharp increase in business activity in August, and has taken the mantle from manufacturing as the main driver of growth,” said Phil Smith, Associate Economics Director at IHS Markit.
“Although the rate of expansion on a monthly basis looks like it has passed its peak, the scene is already set for strong growth in the third quarter, even if we were to see a further loss of momentum in September.”
He went on to add, “The Delta variant is a risk to service sector demand in the near term. But looking ahead, businesses remain optimistic that conditions will have improved come this time next year, with many still hoping for an end to the pandemic and an associated recovery in travel activity.” This optimism in the business environment was mirrored in the rapid pace of job creation.