German PMI Grows to 3 Month High in September

German manufacturing growth accelerated to a three-month high in September, partly driven by stronger demand from abroad, a survey showed on Monday, suggesting factories will contribute to an economic expansion in the third quarter.

Markit’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of the economy, rose to 54.3 from 53.6 in August.

That was in line with a flash reading and well above the 50 line that separates growth from contraction. The PMI average reading for the third quarter as a whole stood at 53.9, the highest quarterly reading since the start of 2014.

“Germany’s manufacturing sector ended the third quarter on a positive note,” Markit economist Oliver Kolodseike said.

Firms increased production to satisfy rising demand and hired staff at a pace not seen since the start of 2012, he said.

He added that inventories fell at the strongest rate in over 6-1/2 years, suggesting manufacturers are likely to further increase output in coming months to replenish stock.

“Industry should therefore have a positive contribution to GDP growth in the third quarter,” Kolodseike concluded.

via Daily Mail

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza