Dec. 15 - German manufacturing contracted for a third straight month in December and is unlikely to provide a lift to Europe's largest economy as new orders continue to dry up says Markit's Chris Williamson.
-- flash PMI data out and just moment has always Reuters has these numbers a couple of minutes ahead of Fannie avenues providers economists expecting growth. In Germany's manufacturing and services sectors to a five more that's -- holds. But so does provide is it's a praise to the upside fifty sue. Point seven for the services the yes sector clearly continues to grow recovering from last month slump lot of factors also surprising 48 point one. Is up on last month and above expectations. Taking the two numbers together 51 point three for the composite putting German output growth at a four month point. Joining me is Chris Williamson chief economist of -- data compiled -- market and put these numbers together. Clearly led by services this compound -- gonna go on his epic. Well it's really difficult because this is December is ultimately get very volatile numbers to both manufacturing and services face or tens in -- indices. But the concern is that manufacturing specially -- order situation export under mr. -- this is very weak. This is only just slightly. We can decline in sort November which was amounts to two and hockey is so it is very very -- situation. Say this is outpacing manufacturing but that has never happens in history this have a really when mine fashions and declined to say this is does not leagues there's -- -- I didn't. An extra exercises is not enough so it's a problem need to feel that we can't that we -- well clearer reception in Germany. Now I don't think so now so we're looking overall Q4 possibly a stagnation that Jimmy coming despite this uptick in December. The big question of course is what happens next to fiscal two where have -- -- from -- And it's a difficult time -- -- and we -- you -- -- -- the political situations going to dominate completely. But when you look at the sort of -- situation especially manufacturing by the -- -- leads the -- -- economy then it doesn't -- well. The with the release of these levels is and on the back in the great cop may be more rate cuts come from the ECB is that helping manufacturers. We issued beat but the problem is that global demand is very weak amendment we've seen some signs of life in the US that Asia is turning down as well we can -- amendment more news on the on the issue. Early today. So. It doesn't really matter what -- changer is if if the rest of the world is is is moving in into lower growth phase and then. That employment growth there is enough fracturing its lowest since twenty cents. I'm it's being -- resilience in Japanese prime growth why why we Sonoma. They have well the saved in cynicism from a great picks up overall favorite post position that Kenya we look at that situation in manufacturing. And that. They and many countries are looking it staff that had accounts given the production in their order books situation because that buckles and the board isn't tending down as well I think -- not gonna play careful. The expansion comes we -- so that curtailing that implement it. -- many things that Chris Williamson. A joint is getting just -- that I halt for now in the eurozone PMI surveys. I can with Crist -- the trouble is is rice's.