S&P GLOBAL MARKET INTELLIGENCE survey showed German manufacturing extended its
recovery in September. The final manufacturing PMI eased to 53.9 from 54.3 in
August but beat the 53.8 preliminary reading. Output rose for a ninth month,
slowing only slightly from August (which recorded the fastest pace in over
four-and-a-half years). New orders increased for a fourth month and export sales
rose again on demand from Asia, Europe and the US. After three months of easing,
cost pressures intensified in September: input-price inflation rose to its
highest since June and output-price inflation ticked up to a three-month high.
Manufacturers’ expected output over the next 12 months hit the strongest level
since February. S&P GLOBAL MARKET INTELLIGENCE deputy chief economist Phil Smith
said these data further support a trend of greater-than-expected resilience in
the German economy despite high energy prices and rising long-term rates.
