According to a preliminary survey released on Friday, the decline in German business activity widened in September as higher energy costs hit the continent's biggest economy and companies experienced a decline in new business.
The manufacturing and service sectors, which together make up more than two-thirds of Germany's economy, are both tracked by S&P Global's flash composite Purchasing Managers' Index (PMI), which declined from August's final reading of 46.9 to 45.9 in September.
An analyst poll conducted by Reuters had indicated a reading of 46.0.
If the reading is confirmed in a final reading, September will have been the lowest month since May 2020 and the third consecutive month that it has fallen below the 50-point threshold that separates growth from contraction.
The manufacturing index also decreased, from a final reading of 49.1 in August to 48.3 this month. The average prediction was for 48.3.
The services index decreased from a final reading of 47.7 in August to 45.4 this month. The average prediction was for 47.2.
"The German economy looks set to contract in the third quarter, and with PMI showing the downturn gathering in September and the survey's forward-looking indicators also deteriorating, the prospects for the fourth quarter are not looking good either," said Phil Smith, economics associate director at S&P Global Market Intelligence.
(Source:www.investing.com)
The manufacturing and service sectors, which together make up more than two-thirds of Germany's economy, are both tracked by S&P Global's flash composite Purchasing Managers' Index (PMI), which declined from August's final reading of 46.9 to 45.9 in September.
An analyst poll conducted by Reuters had indicated a reading of 46.0.
If the reading is confirmed in a final reading, September will have been the lowest month since May 2020 and the third consecutive month that it has fallen below the 50-point threshold that separates growth from contraction.
The manufacturing index also decreased, from a final reading of 49.1 in August to 48.3 this month. The average prediction was for 48.3.
The services index decreased from a final reading of 47.7 in August to 45.4 this month. The average prediction was for 47.2.
"The German economy looks set to contract in the third quarter, and with PMI showing the downturn gathering in September and the survey's forward-looking indicators also deteriorating, the prospects for the fourth quarter are not looking good either," said Phil Smith, economics associate director at S&P Global Market Intelligence.
(Source:www.investing.com)
