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Recovery in German manufacturing picks up pace in September: PMI

Recovery in German manufacturing picks up pace in September: PMI

10/1/2020 12:30:00 PM

Recovery in German manufacturing picks up pace in September: PMI

The recovery in Germany 's manufacturing sector accelerated in September, with output growing at the fastest pace in more than two years, a survey showed on Thursday.

Reuters Staff1 Min ReadFILE PHOTO: A worker at German manufacturer of silos and liquid tankers, Feldbinder Special Vehicles, welds aluminium at the company's plant in Winsen, Germany, July 10, 2018. REUTERS/Fabian BimmerBERLIN (Reuters) - The recovery in Germany’s manufacturing sector accelerated in September, with output growing at the fastest pace in more than two years, a survey showed on Thursday.

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IHS Markit’s final Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of the economy, rose to 56.4 in September.That was lower than a flash estimate of 56.6 but far higher than August’s reading of 52.2.Phil Smith, principal economist at IHS Markit, said both orders and output were rising all across the manufacturing sector, helped by growing export demand.

“Even investment goods producers, who have generally underperformed in the recovery up to now, enjoyed a much better month in September,” Smith said.But he added that firms were still struggling financially, which could be seen in further job cuts and shrinking inventories.

Reporting by Michael Nienaber; Editing by Hugh Lawson Read more: Reuters Top News »

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