Growth slows to near halt in German services sector in September, PMI shows
5:13 am Thursday, October 03rd, 2024
By Rachel More
BERLIN (Reuters) – Growth in Germany’s services sector slowed for a fourth consecutive month in September, coming to a near standstill, a survey showed on Thursday, as falling demand and recession concerns painted a gloomy picture for Europe’s biggest economy.
The HCOB final services Purchasing Managers’ Index fell to 50.6 from 51.2 in August.
Hitting a six-month low, the September reading remained just above the 50.0 mark that separates growth from contraction.
“The services sector is increasingly losing its role as an anchor for the economy,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, pointing to a sharp drop in incoming orders as a particular concern.
“If the downward trend continues, the economy will probably go downhill for a few more months before things improve again,” he added.
Cuts to staffing accelerated in the services sector in September but remained moderate, according to a survey.
Expectations for the year ahead were more subdued than a year ago, with optimists outnumbering pessimists only slightly, as 25% versus 23%, and many participants in the survey expressing concern about an impending recession.
The composite PMI index, which comprises services and manufacturing, fell to 47.5 in September from 48.4 in August.
(Reporting by Rachel More; Editing by Toby Chopra)
