Holger Zschaepitz: Good Morning from Germany, where...
Good Morning from Germany, where private-sector activity unexpectedly shrank as the Iran war triggered the steepest drop in the services sector in more than three years. S&P's Composite German PMI fell to 48.3 in April, down from 51.9 in March. That pushed it below the 50 mark, which separates growth from contraction, for 1st time since May 2025. Analysts polled by BBG had expected only a smaller decline, to 51.2.
The sharp fall in the services PMI likely reflects the surge in uncertainty following the Iran war. Since this index is heavily driven by domestic demand, it suggests that consumers have become much more cautious.
https://x.com/Schuldensuehner/status/2047239052345188646
