Germany’s Services Activity Index Points to the Slowest Growth in Four Months

Source: IHS Markit

Germany Services Business Activity Index was 56.2 in September, the lowest since May and down from 60.8 in August. DAX is up +0.49%, EURUSD is down -0.15%.

• The Composite PMI Output Index fell to 55.5, down from 60.0 in August, the lowest since February.
• Transport & Storage was the main drug on services activity, reflecting slowdowns in manufacturing.
• The growth of new business eased for the second consecutive month, down further from July peak. Backlogs of orders grew solidly in September.
• Job growth expanded for the 15^th month as hiring continued, albeit at a slower pace, reflecting the addition of capacity by businesses.
• Inflationary pressures were at a near-record rise. Output prices rose, with manufacturing posting a higher rate than services.
• Growth expectations by firms eased for the third straight month to remain subdued below a record high in June.