Germany PMI Manufacturing rose to 56.6, in September, up from 52.2, beat expectation of 52.5. That’s also a 26-month high. PMI Services, however, dropped to 49.1, down from 52.5, missed expectation of 53.0 and was back in contraction. PMI Composite dropped slightly to 53.7, down from 54.4.
Phil Smith, Associate Director at IHS Markit said: “While latest PMI data shows German economic output continuing to rise in September, it highlights a growing divergence in trends between manufacturing and services. With services business activity falling for the first time in three months, the recovery in the tertiary sector has possibly reached a ceiling thanks to ongoing social restrictions and still-high levels of uncertainty in the economy, including around job security. In contrast, manufacturing is still rebounding strongly thanks to in part to improving export demand, with sharply rising levels of output and new orders helping to slow the rate of job losses in the sector.”