German composite PMI came in stronger rebounding to 54.0 in

Both the manufacturing output and services headline index surprised to the upside, bouncing back to 53.5 and 54.2 respectively.

However, details paint a less upbeat picture, especially in the services sector where new business declined to a six-month low (-0.7 point to 51.0), while hiring intentions fell to 51.2 (-1.1 points). 

New landlord and tenant regulations might be responsible of the slowdown in forward-looking components. Actually, the rise in headline services was only triggered by better outstanding business to 48.6. In the manufacturing sector, the headline increase (+0.8 point to 51.9) was more broad-based, output component led the way, followed by a rebound in hiring intentions to 51.6 and in new orders to 51.4.

Overall, with today data our Q2 PMI-based GDP indicator edged up 0.2pp to 0.5% q/q.