Germany's Flash Composite PMI Falls to 52.8 in October, Missing Forecasts

Germany's private sector growth slowed in October, with the S&P Global Flash Composite PMI Index falling to 52.8 from 53.8 in September and missing a Reuters poll forecast of 53.3, according to preliminary survey data released Friday. The reading nonetheless marked a fourth consecutive month above the 50 threshold separating growth from contraction. The manufacturing PMI rose to a two-month high of 54.2 from 53.9, while services activity grew modestly for a second month, with its index easing to 51.7 from 52.9. New business across the private sector rose only slightly, as services demand stalled on delayed customer decisions and tighter client budgets. The composite index tracks sectors accounting for more than two-thirds of the euro zone's largest economy. Phil Smith, economics associate director at S&P Global Market Intelligence, said the results showed a sustained upturn but that slower growth underscored a fragile recovery. The rate of inflation in prices charged stood at a seven-month low, though still above its long-run average.