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2014.07.2405:05:00UTC+00German Private Sector Expands Strongly In July

Germany's private sector expanded at a stronger pace in July as services activity growth hit a 37-month high, flash survey data from Markit Economics showed Thursday.

The flash composite output index rose to 55.9 in July, a 3-month high, from 54 in June. The current sequence of output growth stretched to 15 months.

The services Purchasing Managers' Index rose to 56.6 in July, a 37-month high, from 54.6 in June. It was also above the expected score of 54.5.

At the same time, the manufacturing PMI climbed unexpectedly to 52.9 from 52 a month ago. Economists had forecast it to fall to 51.9. Nonetheless, growth was weaker than seen at the beginning of the year.

Volumes of new business continued to rise in the overall private sector, but the rate of growth eased slightly to a four-month low. With output and new orders rising, companies added more staff in July.

Input prices rose further in July. In response of higher input costs, firms raised their charges in July.

Further optimism with regards to the year ahead was signaled by German service providers.

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