- German Services Sector Eases; Expands at 2-month Low in October
The Europe’s largest economy Germany services sector cool in October, according to IHS Markit report.
The Services Purchasing Managers Index stood at 54.7 in October, down from 55.6 in September and below the flash estimate of 55.2. This is the lowest reading in 2 months.
Despite growth in business activity cooling slightly since September, services sector remained strong and on track to meet target in the fourth quarter.
New order rose to a 20-month high in October. Indicating a backdrop of robust demand that pushed new job creation in the tertiary sector to its strongest level since May.
New business in the sector grew for the third consecutive month in October. Also, reaching the highest level in almost 2 years.
Similarly, the amount of business in the sector grew for the fourth time in the past 5 months. Meaning services companies continued to create new jobs as they looked to expand staffing capacity in line with growing demand in the sector.
The manufacturing sector expanded 60.6 in October, the highest in 6.5 years.
“The German manufacturing sector has started the fourth quarter where it left off in the third, recording strong growth in production and adding more new jobs to the economy,” said IHS Markit economist Phil Smith.