Friday, August 12, 2022

German economic recovery loses momentum in Sept

-


© Reuters. FILE PHOTO: A worker wears a protective mask at the Volkswagen assembly line after VW re-starts Europe’s largest car factory after coronavirus shutdown in Wolfsburg, Germany, April 27, 2020, as the spread of the coronavirus disease (COVID-19) continues.

BERLIN (Reuters) – Germany’s economic recovery from the COVID-19 pandemic lost momentum in September as activity in both the manufacturing and services sectors slowed amid supply bottlenecks and waning catch-up effects, a survey showed on Thursday.

IHS Markit’s flash Purchasing Managers’ Index (PMI) showed growth in the manufacturing sector slowed to an eight-month low reading of 58.5 from 62.6 in August. The subindex for the services sector slipped to a four-month low of 56.0 from 60.8 in August.

As a result, the flash composite PMI, which tracks the manufacturing and services sectors that together account for more than two-thirds of the German economy, dropped to a seven-month low of 55.3 from 60.0 in August.

IHS Markit analyst Phil Smith said the survey data suggested that business activity was beginning to level off after rebounding sharply over the summer months.

“However, despite the slowdown in September, the pace of economic growth in the third quarter still looks to have surpassed the 1.6% expansion seen in the three months to June,” Smith added.

While companies remained upbeat about their business outlook on hopes that the pandemic could be overcome soon, growth expectations were still held back by supply chain concerns and risks posed to demand from rising prices, Smith said.

The Ifo institute on Wednesday cut its 2021 growth forecast for Europe’s largest economy to 2.5%, pointing to supply chain disruptions and a scarcity of intermediate goods which combined are slowing down production in the industrial sector.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here

FOLLOW US

0FansLike
3,430FollowersFollow
0SubscribersSubscribe
spot_img

Related Stories