Service sector

German service sector grows at record pace after lockdown lifted | Investment News

BERLIN (Reuters) – Activity in Germany’s services sector grew in July at the fastest pace on record, a survey showed on Wednesday, as businesses benefited from the reopening of the economy after the lifting of lockdowns. restrictions related to COVID-19.

IHS Markit’s final Services Purchasing Managers’ Index (PMI) measuring activity in the sector rose to 61.8 in July from 57.5 in June. July’s reading was the strongest since the survey began more than 24 years ago.

The composite PMI, which includes both the services and manufacturing sectors, rose to 62.4 in July from 60.1 in June, surpassing a previous record set in June 2006.

“The surge in activity is proving to be good news for workers, with companies hiring additional staff at an unprecedented rate,” said Andrew Harker, chief economics officer at IHS Markit.

“Inflationary pressures remain elevated, however, and businesses will take little comfort in the fact that costs rose at a slightly slower pace than in June. With the sector booming and strong pressure on capacity reported, rising costs should remain a feature of at least in the short term,” he added.

German retail sales rose much more than expected in June following the easing of COVID-19 restrictions, data showed on Monday, supporting hopes of a consumer-led recovery in the biggest economy. from Europe during the summer months.

(Writing by Paul Carrel; Editing by Kevin Liffey)

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