BERLIN (Reuters) -Germany’s services sector recorded its fastest growth in more than two years in October, supported by a notable increase in new business and contributing to the first rise in employment in the sector for three months, a survey showed on Wednesday.
The final HCOB Germany services PMI rose to 54.6 in October, still in expansion territory after a slightly lower reading of 51.5 in September.
Coming in above the 50.0 mark signals expansion, while a reading below that figure indicates a drop in overall activity.
The renewed expansion in services, along with stronger manufacturing output growth, helped push the HCOB final composite PMI that tracks both sectors to 53.9, a 29-month high.
“Germany’s services economy is regaining its footing after a subdued period,” said Hamburg Commercial Bank economist Nils Mueller.
“The combination of rising demand, renewed hiring, and stronger pricing power bodes well for the broader economy, even as firms remain watchful of external risks and cost pressures,” he said.
Employment in the services sector, which had fallen in both of the previous two months – and at the quickest rate for more than five years in September – grew at the fastest rate since April.
Expectations retreated slightly from September’s 16-month high, but they nevertheless remained above their historic trend level.
Firms’ continued optimism reflected hopes of an improvement in economic conditions in the next 12 months, plans for new product offerings and enhancements in technology.
(Reporting by Friederike Heine; Editing by Hugh Lawson)
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