German Manufacturing PMI Eases to 53.9 in September as Growth Streak Extends

Germany's manufacturing sector maintained its upturn in September, with production and new orders posting strong growth despite renewed inflationary pressure from global energy markets, S&P Global's final Purchasing Managers' Index showed Thursday. The PMI slipped to 53.9 from 54.3 in August but came in above the preliminary reading of 53.8. Production rose for a ninth consecutive month, easing only slightly after August's fastest expansion in more than four-and-a-half years. New orders increased for a fourth month, with export sales growing on demand from Asia, Europe and the US. Cost pressures intensified after easing over the previous three months, with input price inflation reaching its highest since June and output price inflation hitting a three-month high. Output expectations for the coming 12 months rose to their highest level since February. "The numbers add to the growing narrative that economic conditions are holding up better than expected," said Phil Smith, economics associate director at S&P Global Market Intelligence.