German Private-Sector Activity Unexpectedly Returns to Growth

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomePMN BusinessGerman Private-Sector Activity Unexpectedly Returns to GrowthGerman business activity unexpectedly expanded for the first time since March, though the latest escalation in the Middle East could yet derail the euro zone’s top economy.Author of the article: You can save this article by registering for free here. Or sign-in if you have an account.(Bloomberg) — German business activity unexpectedly expanded for the first time since March, though the latest escalation in the Middle East could yet derail the euro zone’s top economy.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountS&P Global’s Composite Purchasing Managers’ Index increased to 51.2 in July from 49.5 the previous month, rising above the 50 threshold separating expansion from contraction. Analysts had anticipated a more modest increase to 49.7.The boost was driven by manufacturing, which jumped to 52.2 — also its strongest reading in four months. The services sector also improved, though it stayed in contractionary territory, according to gauge based on surveys conducted July 9-22.“The German economy made a positive start to the third quarter,” Phil Smith, an economist at S&P Global Market Intelligence, said Friday in a statement. “Given the escalating hostilities in the region in the past week or so, which have put renewed upward pressure on global energy prices, the path to a sustainable recovery still seems very much uncertain.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againDespite Friday’s surprisingly good PMI data, Europe’s largest economy is on track for another year of lackluster expansion after the Middle East conflict dashed any hopes of a meaningful rebound. Both the government and Bundesbank now expect only 0.5% growth, mainly driven by higher public infrastructure and defense spending.Chancellor Friedrich Merz, who predicted that 2026 would be a “year of growth,” unveiled measures earlier this month that led to greater optimism among investors and June’s Ifo index already showed a slightly brightened business outlook.Still, costlier borrowing presents another headwind for the continent as a whole after the European Central Bank raised interest rates in June for the first time in almost three years. On Thursday, it left them unchanged but kept the option open for another hike, probably in September.PMIs are closely watched by markets as they arrive early in the month and are good at revealing trends and turning points in an economy. A measure of breadth of changes in output rather than depth, business surveys can sometimes be difficult to map directly to quarterly GDP.Euro-zone data will arrive later on Friday.—With assistance from Mark Evans, Harumi Ichikura and Joel Rinneby.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.