Health collapses in September manufacturing sector German: the seasonally adjusted index S&P Global SME (Purchasing managers’ index) fell from the value of 49.1 (recorded in August) to 47.8the lowest figure since June 2020. Economic conditions, according to the rating agency report, worsen across the sector due to the strong drop in new orders and the surge in energy prices, which accelerates theinflation. The level of the indicator, S&P points out, is the lowest recorded since the end of the first wave of Covidwhich had plunged him down to 35.
???????? Germany’s Manufacturing #SMEs slipped to a 27-month low of 47.8 in September (Aug: 49.1), marking a further contraction in operating conditions as new orders fell. Soaring energy prices drove up the rate of input cost inflation to a 3-month high. More: https://t.co/iACqokEuBH pic.twitter.com/gimBcFc72R
– S&P Global PMI ™ (@SPGlobalPMI) October 3, 2022
The acceleration of collapse of orders. In September, new job flows for German manufacturing fell for the sixth month in a row, and the decline was the heaviest since May 2020. The surge in prices and the worsening economic forecasts, in fact, have pushed more and more customers to to delete or postpone orders. “If demand continues to decline in the coming months, as companies expect, facing the high costs will become increasingly difficult, minimizing margins“, Comments Phil Smith, Economics associate director at S&P Global market intelligence.