German Composite PMI down to 54.5 in October

Friday, 23. October 2020 09:31

The flash PMI Composite Output Index for Germany fell by 0.2 points in October compared to the previous month, and landed at a 2-month low of 54.5, IHS Markit revealed in its preliminary report published on Friday. Despite the slight decline, the index surpassed expectations and remained above the 50.0 no-change mark.

The Services PMI Activity Index slipped to 48.9, achieving a 4-month low as the second coronavirus wave prompted increased uncertainty. On the other hand, the Manufacturing Output Index rose to 64.9 to reach the highest value in almost a decade. Accordingly, the Manufacturing PMI advanced to 58.0 to score a 30-month high, continuing a "strong upturn."

Associate Director at IHS Markit, Phil Smith, commented on the results saying that "the German economy is showing a degree of resilience in the face of the second wave of coronavirus cases... The decline in service sector activity has so far been quite limited, whilst at the same time, the country’s economic performance is being buoyed by a strong showing from manufacturing." The report concluded that overall expectations slightly weakened.

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