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German Economy Slips to Seven-Month Low in September

September 23, 2021 by Forex Winner Leave a Comment

German Economy Slips to Seven-Month Low in September

Source: IHS Markit

The German economy slowed to a seven-month low in September, dragged by supply constraints during the month.

  • The headline Flash Germany PMI Composite Index fell to 55.3, down from 60.0 the previous month. This is the lowest since February.
  • The latest reading brought the third-quarter average to 59.2, up from 57.4 the second quarter and the highest in over ten years.
  • Manufacturing output bore the brunt of supply bottlenecks and higher costs, slipping to a 15-month of 53.8. Manufacturing PMI fell to an eight-month low of 58.5.
  • Services dropped to a four-month low of 56.0, with the new business growth recording the weakest performance since April.
  • Goods and services prices moderated from the peak in June, with factory-gate inflation up while services charges dropped to a four-month low.
  • Business sentiment on future activity remains positive but is being dampened by supply issues.

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