Germany PMI Manufacturing rose to 41.9 in October, up from 41.7, and missed expectation of 42.0. That was just a marginal improvement from September’s 10-year low. PMI Services dropped to 51.2, down from 51.4, missed expectation of 51.7. That’s also the worst reading in 37 months. PMI Composite rose to 48.6, little change from seven-year low of 48.5 in September.
Commenting on the flash PMI data, Phil Smith, Principal Economist at IHS Markit said:
“Hopes of a return to growth in Germany in the final quarter have been somewhat dashed by the October flash PMI numbers, which show business activity in the eurozone’s largest economy contracting further and underlying demand continuing to soften.
“Manufacturing remains the main weak link, though here there are some signs of encouragement with rates of decline in production and new orders easing and business confidence improving to a four-month high.
“Perhaps most concerning are the signs of increasing strain on the domestic economy, with growth of service sector activity slowing to the weakest since September 2016 and employment now in decline for the first time in six years.”
