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

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