Germany: Composite PMI records worst reading since May 2020 in October
The S&P Global Composite Purchasing Managers’ Index (PMI) dropped to 45.1 in October, down from September’s 45.7. As a result, the index fell further below the 50.0 no-change threshold, signaling a deterioration in business conditions from the previous month.
The Manufacturing PMI came in at 45.1 in October, down from Septembers 57.8, due to faster declines of output and new orders. Lastly, the Services PMI improved slightly, but remained in contractionary territory, coming in at 46.5 in October (September: 45.0). Demand in both sectors was affected by high inflation and greater caution among clients amid ongoing economic uncertainty. Looking at prices across both sectors, in October, input and output inflation eased only slightly and remained elevated. Finally, manufacturing firms sentiment eased to the lowest since the initial Covid-19 outbreak, while services firms sentiment improved slightly.