German factories have kept the biggest European economy on the road to recovery, at a time when COVID-19 is still having significant effects on the services sector. German manufacturing PMIs jumped to 56.6 in September from the August reading of 52.2 – with this month’s numbers the highest for more than two years. Meanwhile, German services PMIs declined to 49.1, pushing the composite index to its lowest point in 3 months.
This is part of a Europe-wide trend, with manufacturing and services PMIs also diverging in France.
New analysis from the German IFO institute concludes that the economic slowdown would be less than previously expected, revising its forecast to -5.2%, indicating that manufacturing would benefit from improved global demand.