German preliminary PMI indicates improvement in the activity

FXStreet (Mumbai) - The flash estimate released by Markit showed German private sector activity in October improved to 2-month high as a spike in services overshadowed a drop in the manufacturing.

Flash Germany Services Activity Purchasing Managers’ Index (PMI) printed at 55.2 (54.1 in September), 7-month high. Manufacturing PMI came-in at 51.6 (52.3 in September), 5-month low. October data signalled a tenth successive monthly rise in new business placed with German private sector firms.

Meanwhile, German private sector companies raised their selling prices for the ninth month running during October.

The drop in the manufacturing activity is not surprising, since the latest export data showed a sharp fall in German exports.