Flash estimates from Markit Economics suggest that the German purchasing managers index for manufacturing fell to 52.3 in June.
The German services PMI also saw a decline, falling to 53.3 from May's 53.8 level. So both German manufacturing and services are still expanding, albeit at a slwoer pace than previously.
While noting that output had diminished in both services and manufacturing, Markit Economics also highlighted the rising input and output costs due to rising oil and raw material prices.
"German private sector companies signalled that input cost inflation accelerated to a ninety-three month high during the latest survey period, underpinned by the effects of the recent spike in crude oil prices," the report said.
"Meanwhile, output prices at German private sector companies continued to rise robustly in June, with the rate of inflation the second-strongest since September 2000," it continued. "This was led by marked increases in prices charged by firms operating in the service economy."
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