BERLIN (Reuters) – Business activity in Germany’s private sector remained in contraction in September for the third consecutive month due to a sharp drop in demand for goods and services, pointing to a “deep” decline. economic contraction in the current quarter, preliminary results of HCOB purchasing managers surveys showed on Friday.
The “flash” composite PMI index, which brings together the manufacturing and services sectors, stood at 46.2 in September after 44.6 in August and a consensus of 44.8.
The 50 mark separates growth and decline in activity.
“The HCOB composite PMI confirms our position that Germany has entered contraction again in the current quarter,” comments Cyrus de la Rubia, economist at Hamburg Commercial Bank.
He added that he expected a “pretty deep” contraction of 1.0% in GDP this quarter.
Activity in the services sector contracted for the second month in a row, although at a slower pace. Its “flash” PMI index came out at 49.8 compared to 47.3 in August and a consensus of 47.2.
The “flash” PMI index for the manufacturing sector increased slightly to 39.8 in September compared to 39.1 in August and a consensus of 39.5. However, it also remains in negative territory.
“It’s no secret that the German manufacturing sector has been struggling lately,” Cyrus de la Rubia stressed.
(Report by Maria Martinez; French version by Claude Chendjou, edited by Blandine Hénault)
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