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
YAF: Israeli enemy will pay for this crime.
Yemeni Armed Forces: Son of Major General Al-Ghamari martyred alongside him in Israeli aggression.
Yemeni Armed Forces: YAF mourns martyrdom of Chief of the General Staff Mohammad Abd al-Karim al-Ghamari.
Al Mayadeen's correspondent: Palestinian shot and killed by IOF east of Al-Bureij camp in the central Gaza Strip
Al Mayadeen's correspondent in South Lebanon: Occupation forces opened machine gun fire toward outskirts of Aitaroun as locals headed for olive harvest.
Al Mayadeen's correspondent in South Lebanon: Israeli drone drops bomb at outskirts of town of Blida as people head for olive harvest.
Israeli media: Rafah crossing was not opened as planned, and no date has yet been set for the resumption of movement through it.
Colombian President Gustavo Petro: There will be no change in diplomatic relations with Israel until it complies with the agreements.
Maduro: We say to the people of the United States that we do not want war in the Caribbean or in South America.
Maduro: The sadists in America believe they can issue orders for the world to follow, that they rule while others must adapt. But the first to know this is false are the American people themselves.

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

Iran strikes secret Israeli-US bunker under Tel Aviv high-rise

Tel Aviv high-rise struck by Iran hid Site 81, secret US-Israeli base

  • Politics
  • 14 Oct 2025
Palestinian journalist Saleh al-Jaafarawi in an undated image in Gaza, occupied Palestine (Social media)

Gaza Palestinian journalist Saleh al-Jafarawi killed by collaborators

  • Politics
  • 12 Oct 2025
drop site

New report details extensive Israeli arson in Gaza after ceasefire

  • Politics
  • 13 Oct 2025
Illustration of fists breaking shackles, representing the liberation of Palestinian detainees from Israeli prisons. (Illustrated by: AL Mayadeen English/Batoul Chamas)

4 prominent Palestinian detainees to be freed: Who are they?

  • Palestine
  • 13 Oct 2025

Coverage

All
War on Gaza

Read Next

All
Members of the media wait for Palestinian prisoners and injured at the Rafah border crossing in Egypt, Saturday, Feb. 1, 2025 (AP)
Politics

Rafah crossing to reopen for travelers from Gaza: Reuters

US President Donald Trump speaks during an event in the Oval Office at the White House, Wednesday, October 15, 2025, in Washington (AP)
Politics

'Israel' may resume Gaza war if Hamas breaches ceasefire, Trump says

Mourners attend the funeral of slain captive Captain Daniel Peretz at Mt. Herzl military cemetery in occupied al-Quds, Wednesday, October 15, 2025 (AP)
Politics

Al-Qassam Brigades hand over all living Israeli captives

Armored vehicles drive through a street during a government-organized march in support of President Nicolas Maduro in Caracas, Venezuela, Tuesday, Sept. 23, 2025 (AP)
Politics

US approves covert CIA action in Venezuela: 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