Germany’s Private Sector Stabilizes in January

Germany’s private sector activity has stabilized in January, ending a six-month period of contraction, according to a survey released on Friday.

The stabilization is attributed to the growth in services, which has offset the continuous decline in manufacturing output.

The HCOB German flash composite Purchasing Managers’ Index (PMI), compiled by S&P Global, showed improvement in January.

The index rose to 50.1, up from 48.0 in December, marking a seven-month high. This increase signifies that the index has crossed the 50.0 threshold, a critical point distinguishing growth from contraction in the sector.

The rise in the PMI index was unexpected as analysts polled by Reuters had predicted a reading of 48.2 for January. The actual figure of 50.1 exceeded this forecast, indicating a stronger performance in Germany’s private sector than initially anticipated.

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