Germany PMI Manufacturing dropped from 62.6 to 58.5 in September, below expectation of 61.3, an 8-month low. PMI Services dropped from 60.8 to 56.0, below expectation of 60.3, a 4-month low. PMI Composite dropped from 60.0 to 55.3, a 7-month low.
Phil Smith, Associate Director at IHS Markit said:
- “September’s flash PMI survey showed a notable slowdown in the rate of growth of the German economy, in a sign that activity is beginning to level off after rebounding sharply over the summer.
- “However, despite the slowdown in September, the pace of economic growth in the third quarter still looks to have surpassed the 1.6% expansion seen in the three months to June.
- “The survey pointed to a continued drag on growth from the manufacturing sector, which is bearing the brunt of supply shortages and rising costs. Coupled with this, services activity showed its smallest rise since May, as the post-lockdown surge in demand waned further.
- “While business sentiment towards future activity remains positive, reflecting continued hopes of an end to the pandemic, growth expectations are being held back by supply-chain concerns and the risks posed to demand from rising prices.”
