Germany’s private sector remained stuck in a low growth phase in the closing month of 2018, with December’s ‘flash’ PMI data from IHS Markit showing the slowest rise of business activity for four years. The survey’s forward-looking indicators also deteriorated, signalling a near-stalling of order books and a further softening of business confidence towards the outlook.

Commenting on the flash PMI data, Phil Smith, Principal Economist at IHS Markit said: “The PMI data disappointed again in December, indicating the continuation of only a modest rate of underlying growth across Germany’s private sector. Furthermore, with new orders close to stalling in December and firms reporting reduced optimism towards the outlook, there’s a lack of momentum heading into the New Year. “It's a stark contrast from the situation this time last year. Reports of an economy close to overheating have been supplanted by concerns about an increasingly uncertain political backdrop, trade wars and a struggling autos industry”.