FxWirePro: Daily Commodity Tracker - 21st March, 2022 
Germany’s May manufacturing purchasing managers’ index rose for the first time in 2016, despite downward pressure on business activity. Manufacturers and service providers both reported stronger growth which some survey respondents attributed to the processing of backlogs and increased new order, Markit report revealed.
Markit Flash Germany composite output index rose to 54.7 in April from a five-month high of 53.6. Amid a challenging demand environment, certain firms struggled to secure new business opportunities, leading to sharp surge in output. Part of the slowdown was attributed to a weaker rise in new export orders placed with manufacturers, plus slower growth of new work overall at service providers.
Input prices faced by German private sector companies rose for the first time in five months during May. This was largely a result of rising input costs at service providers, as manufacturers reported a further decline.
"However, we should not be too complacent about these numbers and should instead view them with some caution," said Oliver Kolodseike, Economist, Markit.
Meanwhile, overall business conditions in Germany’s manufacturing sector improved at the fastest pace in 2016 so far, with buying activity rising at an accelerated rate. However, the 12-month outlook towards service sector activity remained positive in May, despite the degree of sentiment being the weakest since last November 2015, Markit research added.
