Investing.com – Manufacturing activity in Germany fell more-than-expected in September, dropping to a 24-month low, preliminary data showed on Thursday.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index fell to a seasonally adjusted 50.0 in September, down from 50.9 in August.
Analysts had expected the index to decline to 50.2 in September.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
The report showed that service sector activity in Germany slumped to a 26-month low in September.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 50.3 from 51.1 in August. Analysts had expected the index to decline to 50.6.
The latest reading was only marginally above the 50.0 no-change mark and pointed to the slowest growth in the current 26-month period of expansion.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “September’s flash PMI data suggest that the recovery in Germany’s private sector economy is teetering on the brink, with both manufacturing and services growth close to stagnation.”
“The outlook for the final quarter is also looking increasingly bleak, not least because the recent trend in new orders has been even weaker than that for output, especially in the manufacturing sector,” he added.
Following the release of the data, the euro was fractionally lower against the U.S. dollar, with EUR/USD slipping 0.08% to trade at 1.3562.
Meanwhile, European stock markets were sharply lower after the open. The EURO STOXX 50 tumbled 2.9%, France’s CAC 40 sank 3%, the FTSE 100 fell 2.8%, while Germany's DAX plunged 3.3%.
In a report, market research group Markit said that its preliminary German manufacturing purchasing managers’ index fell to a seasonally adjusted 50.0 in September, down from 50.9 in August.
Analysts had expected the index to decline to 50.2 in September.
A reading above 50.0 on the index indicates industry expansion, below indicates contraction.
The report showed that service sector activity in Germany slumped to a 26-month low in September.
The preliminary services purchasing managers’ index fell to a seasonally adjusted 50.3 from 51.1 in August. Analysts had expected the index to decline to 50.6.
The latest reading was only marginally above the 50.0 no-change mark and pointed to the slowest growth in the current 26-month period of expansion.
Commenting on the report, Tim Moore, Senior Economist at Markit said, “September’s flash PMI data suggest that the recovery in Germany’s private sector economy is teetering on the brink, with both manufacturing and services growth close to stagnation.”
“The outlook for the final quarter is also looking increasingly bleak, not least because the recent trend in new orders has been even weaker than that for output, especially in the manufacturing sector,” he added.
Following the release of the data, the euro was fractionally lower against the U.S. dollar, with EUR/USD slipping 0.08% to trade at 1.3562.
Meanwhile, European stock markets were sharply lower after the open. The EURO STOXX 50 tumbled 2.9%, France’s CAC 40 sank 3%, the FTSE 100 fell 2.8%, while Germany's DAX plunged 3.3%.