The German purchasing managers’ indices (Markit PMI; September) have just been published:
Manufacturing 41.4 (forecast was 44.0; previous month 43.5).
Services 52.5 (forecast was 54.3; previous month was 54.8).
Phil Smith of Markit, who collected the data of the German purchasing managers, comments on this:
“Another month of miserable PMI data for Germany. This time, the composite PMI has even sunk to its lowest level since October 2012 and thus deep into the decline terrain. The economy is moving into the fourth quarter of the year. At the current pace, growth is unlikely to continue until the end of 2019. The data for the industrial sector is simply terrible. What is paralyzing demand is uncertainty over trade conflicts, the outlook for the automotive industry and Brexit. All this has left industrial order books with the biggest drop since the peak of the financial crisis in 2009. The fact that job creation has virtually come to a standstill has ensured that the service sector has lost one of its most important pillars. For example, the first drop in orders from service providers in over four and a half years shows that demand has already worsened throughout Germany.”