Germany PMI Shows Contraction

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By Douglas A. McIntyre Updated Published
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German PMI contracted during September, the first such contraction in 15 months. The news raises the question about whether the recovery from the Great Recession in the eurozone has faltered. This is particularly true since Germany is the largest economy in the region based on gross domestic product, and its economy is considered the healthiest.

The final seasonally adjusted Markit/BME Germany Manufacturing Purchasing Managers’ Index (PMI) — a single-figure snapshot of the performance of the manufacturing economy — slipped below the neutral 50.0 threshold in September. At 49.9, down from 51.4 in August, the headline PMI signalled stagnation in Germany’s goods-producing sector, thereby ending a 14-month sequence of continuous growth. The headline index reading followed an earlier ‘flash’ estimate of 50.3.

Economists and the markets have every reason to be anxious.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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