German factory activity contracts more than expected in October

ANKARA 

Germany’s factory activity contracted more than expected in October due to faster declines in both output and new orders, according to data released by S&P Global on Wednesday.

Germany’s manufacturing purchasing managers’ index (PMI) dropped from 47.8 in September to 45.1 in October, the lowest level since May 2020, the US-based financial services company said.

For the fourth month in a row, the figure was below the threshold that indicates contracting activity.

Manufacturers saw a deepening decline in new orders due to growing concerns about the economic outlook and high energy costs, read an S&P Global report.

“There was further downward pressure on output levels at the start of the fourth quarter, with firms noting the influence of high energy costs and a deepening downturn in demand,” said Phil Smith, economics associate director at S&P Global Market Intelligence.

On the positive side, the rate of employment growth picked up slightly from September’s 19-month low.

“Manufacturers are gravely concerned about the outlook for the next 12 months, with expectations having fallen to their lowest since the initial COVID wave,” Smith added.

• Factory activity
• PMI
• Purchasing Managers’ Index