Firms’ expectations remained deeply negative, reflecting concerns over persistently strong inflationary pressures, rising interest rates and the prospect of a recession.
The headline S&P global flash Germany PMI composite output index fell deeper into contraction territory in October, dropping from September’s 45.7 to 44.1. This was its lowest reading since the initial COVID-19 shutdowns in early-2020.
The deterioration was broad-based by sector and led by manufacturing, where the rate of contraction in output accelerated notably to the quickest for nearly two-and-half years, S&P Global said in a note.
High energy costs were a factor weighing on factory production, according to anecdotal evidence, alongside a sustained weakening of underlying demand for goods.
High price pressures, rising interest rates and growing hesitance among customers due to recession fears all acted to supress demand, reports from surveyed firms showed.
Both manufacturing and services saw the weakest trends in new business since May 2020, although it was the former that recorded the steeper rates of contraction by far.
The pass-through of higher operating expenses by businesses to their customers led to a further sharp rise in average prices charged for goods and services in October.
ALCHEMPro News Desk (DS)
Receive daily prices and market insights straight to your inbox. Subscribe to AlchemPro Weekly!
marketing@alchempro.com
