Courtesy of Mish.
Eurozone activity is crumbling at a steep pace. A close look at Germany provides all the information you need to see that it’s not just the club-med states are in deep trouble.
Steep Drop in Services New Business
The Markit Germany Services PMI® shows Sharpest drop in German services activity since July 2009.
Key points:
- Final Germany Services Business Activity Index at 48.3 in August, down from 50.3 in July.
- Final Germany Composite Output Index at 47.0 in August, down from 47.5 in July.
Summary:
August data pointed to a renewed contraction in German service sector business activity, following a slight expansion during the previous month. This was highlighted by a fall in the final seasonally adjusted Markit Germany Services Business Activity Index from 50.3 in July to 48.3, its lowest since July 2009.
Service providers widely linked the downturn in business activity to weaker spending by businesses and consumers. This contributed to a drop in new business intakes for the fifth consecutive month during August. Latest data pointed to a steep fall in volumes of new work, and the rate of contraction accelerated to the fastest since June 2009.
Steep Drop in Manufacturing New Business
The Markit/BME Germany Manufacturing PMI® shows new export work falls at fastest pace since April 2009.
Key points:
- Manufacturing PMI rises from July’s 37-month low
- Output, new orders and employment all drop at slower rates…
- …but export downturn continues to gather pace
Summary:
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