BERLIN (Reuters) - Germany's economic downturn deepened in February as a slight improvement in services activity was unable to compensate for a surprisingly sharp deterioration in manufacturing, a preliminary survey showed on Thursday.
The HCOB German Flash Composite Purchasing Managers' Index (PMI), compiled by S&P Global, fell to 46.1 in February from 47.0 the month before. That was in contrast to forecasts in a Reuters poll for an increase to 47.5.
February was the eighth month in a row with a reading below the 50 mark, which points to a contraction in business activity, and marked the fastest rate of decline since last October.
The composite PMI index tracks the services and manufacturing sectors that together account for more than two-thirds of the German economy.
"After a glimmer of hope in recent months, the German industry is feeling pretty bleak now," said Tariq Kamal Chaudhry, economist at Hamburg Commercial Bank.
Business activity in the manufacturing sector fell to 42.3 in February from 45.5 the month before, well below analysts' forecasts for a rise to 46.1.
Falling input prices and shorter delivery times, which at first seem positive in light of price pressure and the Red Sea crisis, underscore chronic weakness in demand, Chaudry said.
The services PMI rose to 48.2 in February from 47.7 the month before, beating analysts' expectations for 48.0, but still in contraction territory.
The Hamburg Commercial Bank economist was more optimistic about services: "We can see a light at the end of the tunnel, but it might take until the second quarter to reach it."
(Reporting by Miranda Murray; editing by Christina Fincher)
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