German economic recovery remains on course


    BERLIN- Germany’s service sector barely grew in September, but strong manufacturing helped the private sector in Europe’s largest economy to remain on track for a solid recovery in the third quarter.

    IHS Markit’s final services Purchasing Managers’ Index (PMI) fell to 50.6 from 52.5 in the previous month.

    The reading, which came in higher than a flash reading of 49.1, marked the third month in a row that the services index was above the 50 mark dividing growth from contraction.

    The final composite PMI covering both the services and manufacturing sectors rose to 54.7 from 54.4 the previous month. That was higher than the flash figure of 53.7.

    IHS Markit economist Phil Smith said coronavirus infections in Germany had been rising to a smaller extent than in other European countries, so the impact on actual services activity had been smaller than in the likes of Spain and France.

    “While the service sector is close to stalling, growth in Germany has been buoyed by a reviving manufacturing sector, which means the economy carries at least some momentum heading into the final quarter of the year,” Smith said.