OPINION
Market Rating Before FOMC MeetingJan 31
German Companies recovered from the effects of Omicron
According to the preliminary data released today by IHS Markit, German manufacturing PMI increased by 5.4 to 60.5, services PMI also increased by 7.2 to 52.2 in January. In this period, market expectations for manufacturing PMI was 57 points. For services PMI, it was 48.
According to flash data released by Markit Economics, strong performance was observed in the manufacturing sector as supply bottlenecks eased, but price pressures remained high as input costs hovered at record levels recently.
On the other hand, it was noted that services, which contracted in December, recovered in January and achieved a modest growth thanks to the relative improvement in pandemic conditions.
Markit also reported a somewhat accelerated increase in employment thanks to the accumulated orders in the private sector. Pointing out that labor growth was significant in both sectors, Markit further noted that employment reached its highest level in six months, following the efforts to expand capacity in manufacturing.
The report also pointed out that expectations for future activities improved in January data. Supply chain difficulties are predicted to decrease as the Covid-19 wave eases and the growth forecasts for the next year are around the most positive levels since June.
According to flash data released by Markit Economics, strong performance was observed in the manufacturing sector as supply bottlenecks eased, but price pressures remained high as input costs hovered at record levels recently.
On the other hand, it was noted that services, which contracted in December, recovered in January and achieved a modest growth thanks to the relative improvement in pandemic conditions.
Markit also reported a somewhat accelerated increase in employment thanks to the accumulated orders in the private sector. Pointing out that labor growth was significant in both sectors, Markit further noted that employment reached its highest level in six months, following the efforts to expand capacity in manufacturing.
The report also pointed out that expectations for future activities improved in January data. Supply chain difficulties are predicted to decrease as the Covid-19 wave eases and the growth forecasts for the next year are around the most positive levels since June.
