Germany’s manufacturing PMI rose to 51.4 in October from a 15-month low of 49.9 in September.
Economists expected a reading of 51.8.
Markit’s Purchasing Managers’ Index is a commonly used survey to measure overall business conditions before official stats come out.
Any figure above 50 indicates the sector is growing.
Here are the key points from Markit:
- Production growth accelerates despite marginal decline in new orders
- Rate of job creation hits 33-month high
- Input costs decline at sharpest rate since April
Markit economist Oliver Kolodseike said:
“The headline PMI moved back above the crucial 50.0 mark in October as output growth accelerated and
companies increased their workforce numbers to the greatest extent in nearly three years, adding to hopes that economic growth can be sustained in the coming months.
“However, the survey results also showed that new business fell for the second month running as the
Russian sanctions and a general economic slowdown weighed on demand. Worryingly, the drop in new work was driven by weakening domestic demand.
“Overall, the data send mixed signals about the health of Germany’s manufacturing sector and it is too early to say whether the sector will be able to sustain growth in the fourth quarter.”