According to the flash report from IHS Markit, in November, the growth of activity in the German private sector accelerated slightly, but remained modest. The headline PMI Composite Output Index rose to 52.8 in November from 52.0 in October, but remained significantly lower than in the second and third quarters of this year.
Supply delays continued to put pressure on overall production. However, production growth in both services and manufacturing accelerated to two-month highs. Some firms reported that the growth of business activity was helped by an improvement in customer demand. However, the growth of new orders in November was the weakest in 9 months, as the increase in demand was hampered by supply chain problems and a shortage of certain resources.
The data also indicated a significant increase in purchase and selling prices in November. As for purchase prices, their growth rates have updated the record high set in June, which was caused by supply delays, shortage of materials and higher electricity prices.
The report also reported a further increase in pending orders, but the rate of accumulation of outstanding orders was the lowest since February.
Regarding the prospects for the next 12 months, private sector companies reported sustained optimism. The level of confidence remained historically high, while growth expectations were supported by hopes for a recovery in demand and further economic recovery.