Experts comment on German PMI data: German data wi

Aihucha, September 5: Dr. Cyrusdela Rubia, chief economist of Commerzbank Hamburg, said: "There are some strange phenomena in the German service industry economy: economic activity is slowing down, but prices are accelerating. Usually, downturns economic activity is accompanied by less price pressure. One reason for this confusion is likely to be that the labor-dependent service industry is feeling the pressure of sharp wage increases. Since about two-thirds of the German economy is related to the service industry, ECB authorities may be worried that inflationary pressures in the euro zone's largest economy will remain high, threatening their target of reducing headline inflation to 2%. The latest inflation data from the euro zone confirmed this. In addition, due to the backlog of Jobs are disappearing at a faster rate and workforce expansion has effectively stalled. We may see some job losses in the coming months. However, we do not expect companies to take very aggressive layoffs as the workforce continues to Shortages remain at the forefront of their minds. Finally, while both input and output prices have risen significantly, the modest upward pressure we have seen recently suggests that businesses still have some ability to pass on higher costs to consumers, However, a reduction in activity and new business shows that this comes at a cost.