Key facts
- German business activity expanded in September, with the S&P Global Flash Composite PMI Index rising to 53.8.
- The services sector PMI rose to 52.9, reaching a 7-month high and ending a five-month sequence of contraction.
- The manufacturing PMI fell to 53.8 but remained in expansion territory.
- Input costs rose at the quickest rate for four months.
- Employment rose for a second month running.
German business activity expanded solidly in September, with the S&P Global Flash Composite PMI Index rising to 53.8 from 51.8 in August, its highest reading since October last year. This surpassed economists' forecasts of 51.8. The composite index, which tracks the services and manufacturing sectors, signals growth when above 50.
The services sector saw its PMI rise to 52.9 from 49.7, marking a 7-month high and ending a five-month contraction. The manufacturing PMI, while falling slightly to 53.8 from 54.3, remained in expansion territory. Businesses reported resilience with output growth picking up speed and employment rising for a second consecutive month, despite renewed inflationary pressures. Input costs increased at their quickest rate in four months, driven by higher fuel and energy prices.