German manufacturing sector slump deepens in S&P Global Oct. | So Good News
He noted that conditions across the sector have worsened due to growing concerns about economic prospects and high energy costs.
Although overall cost pressures have eased; A slowdown in input price inflation, along with easing demand for goods and related supply chain constraints, contributed to a 21-month low.
The decline in Germany’s manufacturing sector accelerated at the start of the fourth quarter of this year, according to the S&P Global Purchasing Managers’ Index survey. The financial data firm, which tracks the commodity producers’ business, said output was the worst since May 2020, despite a deep decline in new orders.
PMI produced by S&P Global / BME Germany, seasonally adjusted; new orders; issuing employment Suppliers’ delivery times and buying stocks moved further below the 50.0 unchanged mark. It separates contraction and growth in October.
47.8 to 45.1 in September. The latest reading is the lowest since the start of the COVID-19 wave in early 2020, the company said in a statement.
The decline in the headline index in October was driven by faster declines in both output and new orders.
One area where manufacturers have reported a significant pullback is the purchase of inputs. S&P Global noted that purchasing levels fell to the largest extent since June 2020 as commodity producers reacted to falling production requirements and showed a slight tendency to build up stockpiles.
Manufacturing inventories rose at the slowest rate in seven months. The increase in finished goods inventories showed a more significant slowdown. Here, The latter increase was marginal.
German manufacturers showed increased pessimism on production next year. persistently high inflation; high energy costs; Expectations have fallen to their lowest since the initial COVID-19 outbreak amid concerns over rising interest rates and the prospect of a recession.
Fibre2Fashion News Desk (DS)