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German Private Sector Contraction Continues for Second Straight Month in May, Flash Data Shows

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German private sector businesses saw a decline in activity for the second month in a row in May, led by the service sector, as demand remained weak while cost pressures intensified, flash data from S&P Global showed Thursday.

The Flash Germany Composite PMI Output Index reached a two-month high of 48.6 in May, up from the April reading and consensus estimate of 48.4 but below the 50-point neutral mark.

For the manufacturing sector, the PMI was at a four-month low of 49.9, against the prior reading of 51.4 and the forecast of 51. On the services side, the PMI hit a two-month high of 47.8, compared with the previous 46.9 and consensus estimate of 47.

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