German Services PMI Hits 52.9 in September, Highest Since February on Demand Recovery

Germany's services sector returned to solid growth in September, with the S&P Global Germany Services Purchasing Managers' Index rising to 52.9 from 49.7 in August — the highest reading since just before the start of the Middle East conflict in February, according to survey data released Oct. 5. The reading above the 50 threshold signals expansion. The composite PMI, covering services and manufacturing, climbed to 53.8 from 51.8, its highest in nearly a year. Employment rose for a second consecutive month, reflecting growing capacity pressures and expectations of further activity gains. Surveyed firms reported improved client demand, including signs of higher investment spending, though inflationary pressures revived across the sector. "The rise in business activity in September reinforces the tentative signs of recovery we've been seeing in the services sector for a few months now," said Phil Smith, economics associate director at S&P Global Market Intelligence.