BERLIN: German private sector activity shrank for the first time in 6-1/2 years in September as a manufacturing recession deepened unexpectedly and growth in the service sector lost momentum, a survey showed on Monday.
Markit’s flash composite Purchasing Managers’ Index (PMI), which tracks the manufacturing and services sectors that together account for more than two-thirds of the economy, fell to 49.1 from 51.7 in the previous month. It is the first time since April 2013 that the reading fell below the 50 mark that separates growth from contraction. Analysts had expected a dip to 51.4.
“The economy is limping towards the final quarter of the year and, on its current trajectory, might not see any growth before the end of 2019,” Phil Smith from IHS Markit said.
A sub-index measuring the manufacturing sector plunged to 41.4 — the lowest level in more than 10 years.
“The manufacturing numbers are simply awful,” Smith said. — Reuters
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