Latest data released by Markit/BME – 23 September 2020
The report here offers a bit of a mixed bag, as German manufacturers are seen benefiting from some return in foreign demand but the recovery in services is losing steam as virus fears start to return and weigh on domestic consumption.
“While latest PMI data shows German economic
output continuing to rise in September, it highlights
a growing divergence in trends between
manufacturing and services.
“With services business activity falling for the first
time in three months, the recovery in the tertiary
sector has possibly reached a ceiling thanks to
ongoing social restrictions and still-high levels of
uncertainty in the economy, including around job
security. In contrast, manufacturing is still
rebounding strongly thanks to in part to improving
export demand, with sharply rising levels of output
and new orders helping to slow the rate of job
losses in the sector.
“Rising numbers of coronavirus cases have
coincided with a drop in confidence among service
providers, while manufacturers appear to be
shaking off any worries about the potential for
further restrictions domestically or abroad, with
confidence among goods producers improving to
the highest for more than two-and-half years.”