German private sector expands at slowest pace in eight months in June: PMI

Thursday, as manufacturing lost steam, although Europe's largest

economy looked set to post solid growth in the second quarter.

Markit's final composite Purchasing Managers' Index (PMI),

which tracks growth in the manufacturing and services sectors,

fell to 54.0 in June from 55.6 in May.

That was well above the 50 mark that separates growth from

contraction but was the lowest level since October last year and

also came in below a flash estimate of 54.2.

The services sector PMI fell to 54.6 in June from 56.0 a

month earlier and also below the 54.8 flash estimate, but Markit

said the sector had grown at the fastest rate in three years in

the second quarter.

"While the services sector is clearly making a strong

contribution to growth in the German economy, the manufacturing

sector lost some momentum in June," said PMI economist Oliver

Kolodseike.

He said Germany looked on course for 0.7 percent economic

growth in the second quarter, which would be just down from 0.8

percent growth in the first three months of the year.

Economists and the government expect growth to ease

slightly, with the government forecasting a 1.8 percent

expansion overall this year.

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(Reporting by Annika Breidthardt; Editing by Hugh Lawson)

((annika.breidthardt@thomsonreuters.com)(+49 30 2888

5166)(Reuters Messaging:

annika.breidthardt.reuters.com@reuters.net))