Germany: May PMIs offered limited comfort – Deutsche Bank

Research Team at Deutsche Bank, notes that for Germany after four consecutive declines the increase of the composite PMI in May is encouraging with the manufacturing and services index coming in above market expectations.

Key Quotes

“However, the details are mixed (manuf.) to weak (services) suggesting a more cautious outlook relative to the headline. The composite PMI level is supportive of 0.5% qoq GDP growth in Q2 (DBe: +0.3%) but we believe that there will be payback for Q1 construction strength as signaled by the much weaker construction PMI.”