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German flash manufacturing PMI rises to 3-month high

FXStreet (Mumbai) - As reported by Markit, November data signalled a continuation of private sector output growth in Germany, with the pace of expansion accelerating slightly since October.

The headline manufacturing PMI for Nov rose to a 3-month high at 52.6 versus 52.1 seen in Oct, and beat expectations of a 52.2 reading. While the services sector activity increased sharply to 55.6 in Nov, against 54.5 booked last month and hit a 14-month high.

Thus, the Markit Flash Germany Composite Output Index rose to 54.9, up from 54.2 in Oct.

Oliver Kolodseike, Economist at Markit and author of the Flash Germany PMI®, stated: “Private sector output growth in Germany accelerated further in November, partly driven by efficiency improvements and increased new order intakes, according to panel evidence. In fact, the rise in new business was a particularly bright spot in the data set, with the respective pace of expansion the fastest in two years. Moreover, it looks as if businesses will remain busy in coming months: backlogs of work accumulated at one of the strongest rates over the past four-and-a-half years and companies raised their employment levels to the greatest degree since December 2011 in anticipation of higher new business.

John Williams feel Fed to follow stair-step pattern to decide on subsequent rate hikes

The U.S. central bank had wanted to see “some further improvement in the labor market” and be “reasonably confident” that sluggish inflation would move back to their 2 per cent annual target before raising rates. The U.S. Labor Department reported a surge in employment in October, further backing a December rate hike. Most Federal Reserve officials seemed confident that the Fed’s twin goals of full employment and stable two per cent inflation can be met in due course. The Fed continues to be inclined towards a December rate hike, after having kept the interest rates near zero for almost a decade now.
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European Monetary Union Markit Manufacturing PMI above expectations (52.3) in November: Actual (52.8)

European Monetary Union Markit Manufacturing PMI above expectations (52.3) in November: Actual (52.8)
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