German businesses reported a solid expansion in September, according to the S&P Global Flash Composite PMI released on Wednesday. The index climbed to 53.8 from 51.8 in August, marking the highest level since October of last year and signaling continued growth for the euro‑zone’s largest economy.
Key figures
The composite PMI, which combines the services and manufacturing sectors that together account for more than two‑thirds of Germany’s output, stayed well above the 50‑point threshold that separates growth from contraction. Economists surveyed by Reuters had expected the index to hold at 51.8, so the actual reading exceeded forecasts.
Sector performance
Service‑sector activity surged to 52.9, its highest level in seven months, ending a five‑month streak of decline. Manufacturing remained in expansion territory, with its PMI at 53.8, only a slight dip from 54.3 the month before.
“The flash data pointed to the strongest rise in business activity for almost a year, with the service sector finally rejoining manufacturing in growth territory,” said Phil Smith, economics associate director at S&P Global Market Intelligence.
Employment and outlook
German firms also reported a second consecutive month of rising employment, and business confidence about the outlook stayed steady. Despite these positive signs, input costs accelerated at the fastest pace in four months, driven largely by higher fuel prices and broader energy costs.
“German businesses reported further signs of resilience in September, with output growth picking up speed, expectations towards the outlook holding steady and employment rising for a second month running, all despite renewed pressure on the inflation front,” Smith added.
Implications
The data suggests that Germany’s economy is maintaining momentum even as inflationary pressures persist. Analysts will watch upcoming data releases to see whether the current growth trajectory can be sustained into the final quarter of the year.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
