German Composite PMI Hits 11-Month High of 53.8 in September as Services Return to Growth

German business activity expanded at its fastest pace in nearly a year in September, with the S&P Global Flash Composite PMI rising to 53.8 from 51.8 in August, exceeding the Reuters consensus forecast of 51.8, preliminary data released Sept. 23 showed. The services PMI climbed to 52.9 from 49.7, a seven-month high that ended a five-month contraction streak and lifted the sector back into growth territory alongside manufacturing. The manufacturing PMI slipped to 53.8 from 54.3 but remained above the 50 threshold separating expansion from contraction. The composite index covers sectors accounting for more than two-thirds of Germany's economy, the euro zone's largest. Input costs rose at the fastest rate in four months, well above the long-run average, with firms citing higher fuel and energy prices. Employment rose for a second consecutive month, and outlook expectations held steady despite the renewed inflationary pressure.