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PMI: No positives with costs increasing; output and confidence falling

GERMAN DATA

There are no positives in this German PMI data at first glance. Cost pressures increased while expectations and output both deteriorated...

  • "September saw the rate of increase in business input costs accelerate for the first time in five months, with higher energy prices providing the main impetus according to anecdotal evidence. The increase in service-sector costs was among the fastest seen in the series history, with higher interest rates and rising wage bills adding to cost pressures. Service providers raised their own prices more quickly as a result, driving a re-acceleration in the rate of inflation in overall charges for goods and services to the highest for three months."
  • "September’s survey indicated a considerable deterioration in firms’ expectations towards future activity. After recovering somewhat in August, sentiment turned pessimistic once again and was the lowest since May 2020, reflecting a loss of confidence among services firms and an increasingly gloomy outlook across the manufacturing sector. The supply and cost of energy was of particular concern among businesses."
  • For the composite: "The deterioration owed to a steep and accelerated decline in service sector activity that was the quickest for 28 months."

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