German economic downturn deepens in September, outlook grim: flash PMI


BERLIN—Germany’s slump in business activity deepened in September as rising energy costs hit Europe’s largest economy and firms saw a decline in new business, the report showed on Friday.

The S&P Global Composite Purchasing Managers Index (PMI), which tracks both manufacturing and services, which account for more than two-thirds of the German economy, fell to 45.9 in September from a close of 46.9 in August. did.

A Reuters poll of analysts showed a reading of 46.0.

September marks the third straight month and also the lowest number since May 2020 that the reading has fallen below the 50 mark that separates growth from contraction, if confirmed by final readings.

Separately, the manufacturing index fell to 48.3 from its last reading of 49.1 in August. The consensus prediction was 48.3.

The service index fell to 45.4 from the August closing of 47.7. The consensus prediction was 47.2.

“Germany’s economy looks set to contract in the third quarter. The outlook for the fourth quarter is not good either, as the PMI showed a decline in September and the survey’s forward-looking indicators have deteriorated.” S&P Global Market Intelligence Associate Director of.

Reuters

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