Title : German economic downturn deepens in Sept, outlook grim -flash PMI
Sep 23, 2022 04:35AM ET
A preliminary survey showed Friday that Germany's slump in business activity deepened in September, as rising energy prices hit Europe's biggest economy and companies saw new business decline.
The S&P Global Composite Purchasing Managers' Index, which tracks both the manufacturing and services sectors, which together make up more than two-thirds of the German economy, fell to 45.9 in September from an August reading of 46.9.
A Reuters poll of analysts had expected the figure to be 46.0.
September marked the third consecutive month that the index fell below the 50 mark separating growth from contraction, and the lowest reading since May 2020, if confirmed in the final reading.
Separately, the Manufacturing Business Activity Index fell to 48.3 from a final reading of 49.1 in August. The consensus forecast had assumed 48.3.
The services index fell to 45.4 from a final reading of 47.7 in August. The consensus forecast was for a reading of 47.2.
Germany's economy looks set to contract in the third quarter, and with the September PMI showing the contraction picking up pace and the outlook also deteriorating, the outlook for the fourth quarter is not encouraging either, said Phil Smith, associate director of economics at S&P Global Market Intelligence.