DAX Index Closes Higher; German Private Sector Growth Accelerates
German shares ended Thursday in the green, with the blue-chip DAX index rising 0.65% at closing, as the market evaluated the latest domestic economic data, including final PMI results.Business survey data compiled by S&P Global showed Germany's private sector growth sustained its upward trajectory in August, amid an increase in new business and export sales in the manufacturing segment. The final S&P Global Germany Composite PMI Output Index stood at a five-month high of 51.8, above the previous 51.3 and the flash estimate of 51.Meanwhile, the ifo Institute lifted its 2026 and 2027 price-adjusted gross domestic product growth projections for Germany to 1.4% and 1.2%, respectively, in its autumn economic forecast. The latest figures compare with the previous GDP growth estimate of 0.8% for both years. For 2028, the German economy is expected to grow by 0.8%."Expansionary fiscal policy in Germany and growing impetus from abroad prevented a more severe economic slowdown due to the energy price shock. Value added increased particularly in the manufacturing sector and among business-related service providers," ifo wrote. "However, new economic upsets have emerged since July. After the ceasefire in the Iran War ended, energy prices once again rose sharply. At the same time, rivers in Germany reached record low levels, which is likely to result in production disruptions in economic sectors that are especially dependent on waterways."On the geopolitical front, Reuters reported, citing anonymous sources, that White House advisers are seeking to contain further military escalation with Iran until after the November midterm elections in the US to prevent potential voter pushback. Meanwhile, US President Donald Trump said he thinks the escalated military campaign would not last long. However, he dismissed claims that electoral concerns are shaping his strategy in Iran, insisting the priority is still focused on eliminating Tehran's nuclear capabilities.In corporate updates, Deutsche Telekom (DTE.F) gained 1.30% after Bloomberg News reported that activist investor Elliott Management amassed a "sizeable" stake in the German telecommunications giant to derail a potential merger with its 53%-owned American unit T-Mobile US (TM5.F). T-Mobile US' Xetra-listed stock was down 0.02% at closing.Porsche AG (P911.F) announced plans to consolidate its global sales regions to four from five as part of efforts to streamline its operations. The restructuring, scheduled to take effect on Oct. 1, merges Germany into Europe, unifies North, Central and South America, and dissolves two regional central departments. The German automaker ended the trading day 1.52% higher.
