Business Activity in German Services Sector Accelerated in September

Forex News

Business activity in the German services sector accelerated in September, pointing that strong domestic demand is helping to cushion the effects of a slowdown in manufacturing. German Services PMI increased to 55.9 in September, up from 55.0 in August. The indicator reached an 8-month high.

Meanwhile, IHS Markit's final composite Purchasing Managers' Index, which tracks the manufacturing and services sectors that account for more than two-thirds of the economy, fell to 55.0 in September from 55.6 in August.

German services sector is boosted by a strong domestic demand thanks to record-high employment, rising real wages, increased job security and low borrowing costs. The rate of job creation hitting its highest in nearly 11 years and service firms remaining very optimistic about future business.

Eurozone PMI services was finalized at 54.7 in September, unrevised, up from August’s 54.4. PMI composite was finalized at 54.1, down from August’s 54.4.