S&P Global reports that German economic activity contracted further in September. Higher energy costs are weighing on the German economy, which is the largest in Europe. At the same time, companies expect a decline in new orders.
The Purchasing Managers’ Index (PMI), which includes the manufacturing and services sectors accounting for more than two-thirds of the German economy, fell to 45.9 in September from the August reading of 46.9.
September was the third consecutive month in which the figures remained below 50, indicating a contraction in the German corporate sector. If the final figures are confirmed, this would be the lowest level since May 2020.
The PMI for the manufacturing sector fell to 48.3 in September from 49.1 in August.
The services PMI fell to 45.4 in September from the final August reading of 47.7.