Germany PMI manufacturing dropped to 52.3 in October, down from 53.7 and missed expectation of 53.5. That’s a 29-month low.
PMI services dropped to 53.6, down from 55.9 and missed expectation of 55.5. That’s a 5-month low. PMI composite dropped to 52.7, down from 55.0, hit a 41-month low.
Commenting on the flash PMI data, Phil Smith, Principal Economist at IHS Markit said:
“October’s flash PMI results made for unpleasant reading, with data showing slowdowns in rates of growth across all the main measures of business performance: output, new orders and employment. The rise in overall business activity was the weakest in almost three-and-a-half years, reflecting not only a further easing of manufacturing production growth, but also a slowdown in the previously steadfast service sector.
“Growth in the manufacturing sector has been slowing for some time now, so it isn’t surprising to see that weakness spilling over into services given the interconnectivity between the two.
“Notably, manufacturing order books fell into contraction at the start of the final quarter following almost four years of uninterrupted growth. The survey’s anecdotal evidence highlighted the car industry as an area of weakness, while also indicating a further pullback in orders from abroad.
“There was also a squeeze on demand from higher selling prices during the month, with the increase in service sector charges the steepest seen in over two decades of data collection.
“German businesses have lowered their expectations for activity in line with slower growth and a worsening global backdrop, with manufacturers in particular concerned about the outlook for output over the next 12 months.”
