S&P Global Market Intelligence deputy head of economics Phil Smith said
September’s rebound in German business activity reinforces preliminary signs of
services-sector recovery seen over recent months. Continued improvement in new
orders signals stronger corporate resilience, with September marking the most
marked expansion since November. The recovery is notable amid a re-acceleration
of energy-related input-cost inflation in the past month: services input-cost
inflation in September rose to levels comparable with April’s spike when oil
first surged. A fuel-tax cut at the start of October is expected to slow the
The pace of inflation increases, offering some relief to firms and consumers.
