Mixed PMI report

Input price inflation eased but factory gate prices picked up more than last month (despite service output inflation falling further). Confidence picked up a somewhat, however, in a mixed report (albeit with all headline numbers below 50). Highlights from the press release below:

• "Firms’ expectations meanwhile ticked up from July’s recent low, amid a further easing of rates of increase in businesses’ costs and output prices, although confidence remained historically subdued"
• "Third straight monthly decline in inflows of new business across Germany’s private sector economy in August. The rate of decline eased slightly compared to the previous month, a trend evident across both manufacturing and services, although it remained solid overall and quicker than that of business activity. Weaker export sales were once again a key driver of the downturn, with goods producers recording the steepest drop in new business from abroad for over two years midway through the third quarter."
• "Whilst remaining well above its historical series average, the overall rate of input cost inflation eased for the fourth month in a row to the weakest since September last year"
• "Average prices charged for goods and services continued to rise sharply but the rate of inflation eased for the fourth month running in August, down to its lowest since February. The slowdown owed exclusively to the service sector, with factory gate charges rising at a slightly quicker rate than in the previous month."