By Maria Martinez
BERLIN (Reuters) - Growth in Germany's services sector slowed for a third consecutive month in August, a survey showed on Wednesday, in a further sign that Europe's biggest economy is losing steam.
The HCOB final services Purchasing Managers' Index eased to 51.2 from 52.5 in July. Although slightly below a preliminary estimate of 51.4, it was above the 50.0 mark that separates growth from contraction for a sixth straight month.
"Without growth in the private service sector, Germany’s economic picture would be pretty grim," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, noting the sector's resilience had helped offset recessions in manufacturing and construction.
"But that support is starting to weaken," he added.
Employment fell for a second month running, the survey showed, contrasting with consistent job creation during the first half of the year.
August's survey data showed little change in expectations for the year ahead.
The composite PMI index, which comprises services and manufacturing, fell to 48.4 in August from 49.1 in July, slightly below a preliminary reading of 48.5.
Analysis:
The slowdown in Germany's services sector is a concerning sign for the overall economy. As the services sector plays a crucial role in supporting economic growth, a weakening in this area could have negative implications for the country's financial stability. The fall in the composite PMI index, which includes both services and manufacturing, further highlights the challenges facing Germany's economy. Investors and individuals alike should pay close attention to these developments as they could impact investment decisions and personal finances. It is essential to stay informed and adapt to the changing economic landscape to protect and grow one's financial assets.
