By Geoffrey Smith
Investing.com -- Activity in Europe's largest manufacturing economy improved in November for the first time since Russia's invasion of Ukraine, according to a closely-watched business survey.
The manufacturing purchasing managers index compiled by S&P Global rose to 46.7 from 45.1 in October, defying expectations of a further decline but remaining clearly below the 50 level that typically separates growth from contraction.
The comparable index for the services sector also improved surprisingly, leading the composite PMI to rebound to 46.4 from 45.1.
“November’s flash PMI survey doesn’t alter the narrative that Germany is likely heading for a recession, but it does offer some hope that the contraction in the economy will perhaps be shallower than first feared," S&P economist Phil Smith said in a statement.
S&P noted that companies reported a clear slowdown in the rise of input prices that has dogged industry all year. That is consistent with anecdotal reports from individual companies such as Siemens (ETR:SIEGn) that showed a clear easing of supply chain bottlenecks in the last few months.