Today's Eurozone Manufacturing Report Was Awful, But One Country Came Out On Top

This morning’s composite Eurozone Flash PMI reflected an economy that was sinking deeper into recession.

However, one Eurozone country came out looking better: Germany.

Germany’s composite Flash PMI index jumped to 49.7 in September from 47.0 in August.  While the sub-50 number reflects contraction, it is nevertheless a 5-month high.

From Markit economist Tim Moore:

“Germany managed to shake off the summertime blues in September, with renewed services growth helping to stabilise private sector output as a whole. Manufacturing also made a contribution to the slightly less gloomy picture, albeit simply by achieving a slower contraction of production compared to August.

“However, the halt to the private sector downturn seems to have a fragile veneer, given the reliance on pipeline projects over new business to stabilise output. A lack of incoming new work, combined with a sharp drop in year-ahead expectations for activity, meant that service providers cut back on staffing levels at the most marked pace since May 2009.”

germany pmi

Photo: Markit

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