Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Lebanese Ministry of Health: One person was killed in an Israeli airstrike on a car in the town of Burj Qalawieh, south Lebanon.
Al Mayadeen correspondent: The first ship of the Maghreb fleet delivering aid to break the siege on Gaza departs from the port of Gammarth in Tunisia.
Channel 12: Airspace closed at Ramon Airport due to fears of drone infiltration
IOF Spokesperson: Sirens sounded over an aircraft infiltration in the Bir Ora area, and details are being examined
Drone infiltration sirens sound north of the Gulf of Aqaba
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out five extremely violent raids on the western areas of Gaza City
Al Mayadeen's correspondent in Gaza: The Israeli occupation carried out major bombings in the Gaza Strip, the most violent since October 7
Yemeni Armed Forces spokesperson Brigadier General Yahya Saree: The missile force carried out a major operation using the Palestine 2 ballistic hypersonic missile, hitting several targets in occupied Yafa.
Sirens sound in large areas of occupied Palestine after a missile launch from Yemen was detected
Al Mayadeen's correspondent: 14 martyrs arrive at al-Shifa Hospital following Israeli massacre of al-Sultan Family north of Gaza.

German business activity hits 3-year low, service sector to recession

  • By Al Mayadeen English
  • Source: Agencies
  • 23 Aug 2023 16:08
  • 1 Shares
3 Min Read

An S&P Global report says that a recession in Germany's service sector likely began in the second quarter of 2023.

  • x
  • VW production line: carmaking is a major industry for the eurozone's biggest economy
    A Volkswagen VW production line in Germany. (AFP)

Preliminary data revealed on Wednesday that Germany's market activities experienced their sharpest decline in over three years during August.

According to S&P Global, the HCOB German Flash Composite Purchasing Managers' Index (PMI) fell from 48.5 in July to 44.7 this month, recording the lowest rate since May 2022, an underperformance from experts' forecasts of 48.3.

At a reading below 50, the numbers indicated continued contraction in activity growth.

Read more: German industrial output plunges again by 1.5% in June

"Any hope that the service sector might rescue the German economy has evaporated," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. "Instead, the service sector is about to join the recession in manufacturing, which looks to have started in the second quarter."

Services business activity contracted for the first time since January as it fell from 52.3 to 47.3.

While the PMI increased to 39.1 this month compared to July's 38.8, the index remained well under the healthy threshold.

As the central bank continues to raise rates, alongside consumer uncertainty and sticky inflation, companies maintained a negative outlook. Pressure further mounted on inflation after enterprises chose to hike prices to keep up with accelerating costs and expenses.

"Services companies seem to feel surprisingly bold jacking up prices at an even quicker rate," de la Rubia added.

Last June, the Eurozone officially announced it had entered a recession. Among the main factors for this financial crisis was the downturn of the bloc's biggest economies, on top of which was Germany.

Read more: Making sense of a self-induced recession in Europe

In its monthly report published on Monday, the Bundesbank said that Germany's economic production is anticipated to "stagnate" in the third quarter of 2023, after consecutive contractions seen in the first two quarters.

“High financing costs will probably continue to weigh on investment. They are also still dampening demand in the construction sector, which is likely to be increasingly reflected in production,” the German bank stated.

Europe's powerhouse is "still lackluster" and "still experiencing a period of weakness," it added.

In July, the country's year-on-year inflation rate fell to 6.2 percent as energy prices began to gradually decline.

But inflation is likely to remain above the ECB's 2 percent target "for longer," mainly due to wage pressures, the bank continued.

  • HCOB
  • Germany
  • Berlin
  • PMI
  • Recession
  • German economy

Most Read

The damaged building in the Katara neighborhood, Doha, Qatar, September 9, 2025 (Social media)

Hamas delegation survives Israeli assassination attempt in Qatar

  • Politics
  • 9 Sep 2025
Israeli police and rescue teams respond at the scene of a shooting attack where several people killed and injured in Jerusalem, Monday, Sept. 8, 2025 (AP)

Al-Quds shooting: 7 settlers killed, several critically injured

  • Politics
  • 8 Sep 2025
Pro-"Israel" conservative Charlie Kirk shot during Utah speech

Pro-'Israel' far-right Charlie Kirk shot dead during Utah speech

  • US & Canada
  • 11 Sep 2025
Uprising against Volker Turk at the Human Rights Council over Gaza.

Uprising against Volker Turk at the Human Rights Council over Gaza

  • Politics
  • 12 Sep 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
People protest against Israeli Prime Minister Benjamin Netanyahu during the 79th session of the United Nations General Assembly, in New York, on Friday, September 27, 2024 (AP)
Politics

'Israel' stops unfunded diplomacy ahead of UN, October 7 memorial

An Israeli Air Force fighter jet releases flares over the Gaza Strip, is seen from southern occupied Palestine, Thursday, May 8, 2025 (AP)
Politics

OIC summit draft: Israeli attack on Qatar risks normalization

People shout slogans and hold Palestinian flags while protesting during the twenty-first stage of La Vuelta cycling race from Alalpardo to Madrid, Spain, Sunday, Sept. 14, 2025. (AP)
Sports

Pro-Palestine protests force abrupt end to Vuelta a España finale

Damage is seen after an Israeli strike targeted a compound that hosted Hamas' political leadership in Doha, Qatar, on Wednesday, September 10, 2025 (AP)
Politics

Israeli regime faces growing isolation over Qatar strike: Reports

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS