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InstaForex - Official partner of Dragon Racing

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2020.04.2308:38:00UTC+00Germany Private Sector Shrinks On COVID-19 Lockdown

The German private sector shrank the most on record in April as both services and manufacturing recorded decreases in output due to the COVID-19 lockdown, flash survey results from IHS Markit showed Thursday.

The headline flash composite output index declined to 17.1 in April from 35.0 in March. This was the lowest reading since comparable data were first compiled more than 22 years ago.

The score was forecast to drop moderately to 28.8.

"April's PMI surveys reveal the full effects of the COVID-19 pandemic and subsequent lockdown on Germany's economy, showing business activity across manufacturing and services falling at a rate unlike anything that has come before," Phil Smith, a principal economist at IHS Markit said.

The flash manufacturing Purchasing Managers' Index fell sharply to a 133-month low of 34.4 from 45.4 in March. The expected reading was 39.0.

The services PMI reached a record low of 15.9 versus 31.7 a month ago and forecast of 28.1.

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