German Private Sector Output Falls

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By Trey Thoelcke Published
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The Markit preliminary composite purchasing managers’ index (PMI) for Germany indicated that private sector output fell at faster rate during August. A renewed contraction in services offset slower drop in manufacturing activity.

The index declined to 47.0, compared to a reading of 47.5 for July, and is below the 50-point level that separates contraction from expansion. This reading signaled the steepest rate of private sector output contraction since June 2009.

The services PMI reading slipped to 48.3 from 50.03 in July, and the manufacturing PMI advanced to 45.1 from 43.0.

The data showed to a steep and accelerated reduction in new business received by private sector companies across the nation. In the manufacturing sector, new export orders plunged in August, and the rate of contraction reached its fastest pace since April 2009.

Weaker demand contributed to a fifth successive monthly fall in employment levels in  manufacturing. However, service providers beefed up their staffing numbers in August.

Tim Moore, a senior economist at Markit, said:

August PMI data highlights the weakest German private sector performance for over three years … the German economy is sailing into greater headwinds as the third quarter progresses, with PMI readings slipping deeper into territory normally associated with GDP contractions.

Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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