23.06.201405:03:00UTC+00German Private Sector Growth Eases To 8-Month Low

Germany's private sector expanded at the slowest pace in eight months in June, flash survey data from Markit Economics revealed Monday.

The flash composite output index declined to 54.2 in June from 55.6 in May. Despite softening to the weakest in eight months, the pace of growth remained above the long-run series average.

The services Purchasing Managers' Index dipped to 54.8 from 56 in May. The score was expected to drop moderately to 55.8.

The manufacturing PMI, meanwhile, rose marginally to 52.4 from 52.3 in the preceding month. The expected reading was 52.5.

Slower increases were recorded in both the manufacturing and service sectors, with the latter outperforming its counterpart. Extending the current expansionary sequence to one year, new business received by German private sector firms rose in June.

Companies operating in the German private sector signaled further net job creation in June.

The survey showed that cost inflation pressures persisted in June, with the latest increase in input prices being the most marked in the year-to-date. Manufacturing and services companies also indicated that selling prices were raised in June.

German service firms remained optimistic about the prospects for output growth in the year ahead, with the degree of positive sentiment hitting a three-month high.