Germany’s manufacturing PMI report jumped to 47.4 in September from 44.7 in August.This was marginally better than the 47.3 economists were looking for.
Key points from Markit:
- Output falls at much slower pace than in August
- Least marked drop in new export work since May
- Cost inflation hits five-month high
“Germany saw the biggest one-month manufacturing PMI gain of the ‘big four’ euro area nations during September, and in doing so replaced France atop this performance table. This is an encouraging sign that the bottom has been reached for the German PMI survey, with the headline index boosted by slower falls in both output and new order inflows.
“A fractionally faster drop in finished goods stocks alongside a slower fall in new work leaves the new orders to inventories index ratio at a more favourable level for future output. The stabilisation of employment numbers in September is a further sign that business conditions for German manufacturers are starting to move in the right direction, although it is disappointing but not surprising that input cost pressures returned after a brief interlude earlier in the summer.”