German business activity grows in September, PMI shows
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A cargo ship is seen on river Main in front of the skyline during a summer evening in Frankfurt, Germany, August 13, 2023. REUTERS/Kai Pfaffenbach
By Maria Martinez
BERLIN, Sept 23 (Reuters) - German business activity expanded solidly in September despite firms facing increased inflationary pressures, a preliminary business survey showed on Wednesday.
The S&P Global Flash Composite PMI Index for Germany rose to 53.8 in September from 51.8 in August, posting its highest reading since October last year.
Economists polled by Reuters had forecast a reading of 51.8, unchanged from last month.
The composite index tracks the services and manufacturing sectors that together account for more than two-thirds of the euro zone's largest economy. A reading above the 50 mark signals growth.
"The flash data pointed to the strongest rise in business activity for almost a year, with the service sector finally rejoining manufacturing in growth territory," said Phil Smith, economics associate director at S&P Global Market Intelligence.
The services PMI rose to 52.9 from 49.7, reaching a 7-month high and ending a five-month sequence of contraction.
The manufacturing PMI fell to 53.8 from 54.3 in the previous month, but remained in expansion territory.
"German businesses reported further signs of resilience in September, with output growth picking up speed, expectations towards the outlook holding steady and employment rising for a second month running, all despite renewed pressure on the inflation front," Smith said.
Input costs rose at the quickest rate for four months and one that was well above the long-run series average, with surveyed firms widely noting the impact of increased fuel prices and the cost of energy more generally.
(Reporting by Maria Martinez; Editing by Toby Chopra)
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