Updated
Updated · Bloomberg · Jun 23
Germany’s June PMI Falls to 48 as Iran War Slump Hits Services
Updated
Updated · Bloomberg · Jun 23

Germany’s June PMI Falls to 48 as Iran War Slump Hits Services

3 articles · Updated · Bloomberg · Jun 23

Summary

  • Germany’s private sector contracted for a third straight month in June, with S&P Global’s Composite PMI dropping to 48 from 48.8 and missing expectations for a rise to 49.7.
  • Services drove the deterioration as confidence weakened over the Iran war, pushing activity down at its fastest pace since 2022.
  • June flash data showed services PMI at 46.8 while manufacturing held at 50.0, underscoring that weakness is concentrated in the larger services economy.
  • The deeper-than-expected slump adds to signs Germany’s economy may contract in the second quarter after business activity stayed below the 50 expansion line.

Insights

As its economy falters, is Germany losing its long-held position as the powerhouse of Europe?
With AI automating jobs and services declining, is Germany’s economic engine fundamentally broken?
Is the Middle East war a convenient excuse for Germany’s deep-seated structural economic problems?