Germany Private Sector Activity Shrinks at Faster Pace
The HCOB Flash Germany Composite PMI fell for a fourth straight month to 47.2 in September 2024, the lowest since February, and below 48.4 in August and forecasts of 48.2. The reading pointed to a deeper contraction in private sector activity, amid a sharp and accelerated reduction in manufacturing production (40.5, the lowest in twelve months), and a near-stalling of growth in the service sector (50.6, a six-month low).
Companies highlighted increased caution among customers and associated investment reticence, coupled with concerns towards the health of the economy. Total inflows of new business fell at the quickest rate for nearly a year and new export business also fell at a quicker rate. Backlogs of work were down and job shedding was the highest in about 15 years. Meanwhile, business expectations turned pessimistic for the first time in a year prompted by recession concerns, market uncertainty and weakness in the automotive and construction sectors.
Source: Trading Economics
