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.”
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