Germany’s economic come back

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Germany's service sector has led to a positive economic outlook, with the data for April showing strong expansion in the service sector PMIs for Germany, the UK, and the Eurozone. However, the manufacturing sector has contracted, with new orders and total new business falling. The employment situation in Germany's PMIs for April also showed contrasting fortunes for the service and manufacturing sectors, with the service sector adding employees and the manufacturing sector shedding staff. Inflation pressure appears to be moderating. Germany's economic recovery is dependent on the service sector and consumer spending, while the manufacturing sector remains weak. The stock market has reacted positively to the data, with the Dax leading the way in Europe. The outlook for the euro is positive, but there may be a cap on EUR/USD strength due to lower German bond yields. The immediate resistance for EUR/USD lies at $1.0700. The mid-cap stock index in Germany could outperform the large-cap Dax if the economic recovery continues.

#Germany #Economy #ServiceSector #ManufacturingSector #Pmi #Recession #Employment #Inflation #StockMarket #Euro

https://www.fxstreet.com/analysis/germanys-economic-come-back-202404231009