German services sector continues to rebound despite clouded outlook – PMI

BERLIN, April 5 (Reuters)Germany’s services sector grew at the fastest pace in six months in March after COVID-19 restrictions were lifted, a survey showed on Tuesday, but uncertainty following Russia’s invasion of Ukraine and rising inflation has clouded the outlook.

S&P Global’s final services PMI fell to 56.1 from 55.8 in February. This reading was down from an initial “flash” value of 55.0.

This was the sector’s strongest month since last September as hiring activity remained strong.

“With manufacturing output under pressure due to new supply constraints resulting from Russia’s invasion of Ukraine, the services sector provided key support to overall economic activity in March,” Phil said. Smith, associate director of economics at S&P Global.

The composite PMI, which includes both services and manufacturing sectors, fell to 55.1 from 55.6 in February. The reading was below the flash figure of 54.6.

“That’s really where the good news ends. High levels of uncertainty, lower export demand and pressure on purchasing power from sharply rising prices have all weighed on the market. influx of new business in March,” he said.

“These factors have been compounded by concerns about the effects of supply chain disruption on the economy, so services companies are feeling far less optimistic about the outlook than just a few weeks ago. .”

(Reporting by Joseph Nasr; Editing by Hugh Lawson)

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