Investing.com - Private sector output in Germany deteriorated in May, as business activity rose at the weakest pace for over one-and-a-half years, according to survey data released on Wednesday.
The closely-watched report underlined worries over the health of the euro zone's largest economy and further pushed back expectations of monetary tightening by the European Central Bank.
Market research group Markit said that its Flash German Composite Output Index, which measures the combined output of both the manufacturing and service sectors registered a reading of 53.1 this month, a 20-month low and down from 54.6 in April.
Economists had forecast a reading of 54.7.
The preliminary German services purchasing managers’ index declined to 52.1 this month, from 53.0.
That was below expectations for a reading of 53.1.
The flash manufacturing purchasing managers’ index slumped to 56.8, the lowest in 15 months, from a final reading of 58.1 in April.
Analysts had expected the index to slip to 57.9.
On the index, a reading above 50.0 indicates industry expansion, below indicates contraction.
Commenting on the report, Phil Smith, Principal Economist at Markit, said, “weaker order book growth and a further waning of business confidence point to the economy carrying a lot less underlying momentum than at the end of 2017."