The German private sector growth slows in August – Yahoo Finance Spain

BERLIN (Reuters) – The German private sector growth slowed in August, but remained robust as a whole, according to a poll released Tuesday suggests that the Europe’s largest economy is poised to keep expanding in the summer months after growing more than expected in the second quarter.

the Managers’ Index Composite Purchase advance Markit, which oversees the service sector activity manufacturing and representing more than two thirds of the German economy, rose to 54.4 from 55.3 in July.

the data was weaker than the consensus forecast by Reuters had expected a reading of 55.0, but the figure continued comfortably above 50, which separates growth from contraction.

the poll showed that growth in the services sector slowed unexpectedly in July after regaining speed, while manufacturing also lost some pace in August after a strong performance in previous months.

“the poll today shows that the German economy continues its upward trend intinterrumpida in August,” said Markit economist Oliver Kolodseike.

the production, new orders and employment grew at a slightly weaker pace than last month, suggesting that business conditions are a bit more challenging, he said.

The sub-index for manufacturing fell to 53.6 as companies reported weaker growth in production and new orders while new personnel hired to a weaker pace.

the sub-index fell to 53.3 services, its lowest level in 15 months. Service providers hired fewer staff than in previous months as their business expectations deteriorated to its lowest level in nearly two years.

“There seems to be some nervousness in the services sector could move to a weaker in the coming months growth, “said the head of Markit Chris Williamson economist.

But he added that the overall picture remained encouraging, and the survey data pointed to a growth rate of 0, 5 percent in the third quarter.

the German economy grew 0.4 percent in the second quarter, twice as expected by the consensus of Reuters, as more exports, strong private consumption and increased government spending offset lower investment in construction and machinery

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