German Private Sector Contracts More Than Forecast

Germany's private sector activity deteriorated more-than-expected in August, and logged the worst performance for over two years amid a backdrop of persistently high inflation, economic uncertainty and increased energy costs, flash survey data from S&P Global showed on Friday.

The flash composite output index dropped to a 28-month low of 45.9 in September from 46.9 in August. The index was forecast to fall to 46.0

Any reading below 50 indicates contraction, while a score above 50 suggests expansion in the sector.

Both the services and manufacturing sectors registered declines in September, and the fall was more evident in the services sector.

The services Purchasing Managers' Index fell to a 28-month low of 45.4 in September from 47.7 in the prior month. The score was forecast to fall to 47.2.

Manufacturing output declined for the fourth consecutive month. The rate of decline slowed to its lowest level since June as a result of certain reports of improved raw material availability.

The manufacturing PMI decreased to a 27-month low of 48.3 in September from 49.1 in August. That was in line with expectations.

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