According to a survey released on Wednesday, the decline in Germany’s manufacturing sector accelerated in October as output and new orders plunged, signalling a bad start to the fourth quarter that shows no signs of abating.
The manufacturing S&P Global Purchasing Managers’ Index (PMI), which makes up approximately a fifth of the German economy, dropped to 45.1, its lowest level since May 2020, from 47.8 in September.
An October result of 45.7 was predicted by an analyst survey conducted by Reuters.
According to Phil Smith, associate director for economics at S&P Global Market Intelligence, ‘October’s PMI revealed business conditions across the manufacturing sector were growing more and more tough, with no immediate recovery in sight.’
Manufacturers are really worried about the future given that expectations have dropped to their lowest levels since the first COVID wave, he continued.
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