Latest data released by Markit/BME - 2 November 2020
The preliminary release can be found here. A slight positive revision to what was already an impressive print for Germany last month. Factory activity continues to bounce back as new orders show a record increase since the survey began in 1996.
Outside of Germany, the two-paced economy across the region is less profound with the latest virus restrictions set to weigh more heavily on the services sector in the month ahead.
Markit notes that:
"Manufacturing in Germany continued to bounce back strongly in October. The standout data point was the survey's measure of new orders, which reached an all-time high on the back of a revival in demand both domestically and internationally.
"Less positively and perhaps a sign that growth could be about to slow as more firms get back to pre-COVID levels of output, we saw the first setback to manufacturing expectations for seven months in October. It comes amid rising numbers of coronavirus cases in Europe, and the increased threat of renewed disruption to supply and demand that comes with it.
"Inflationary pressures have started to return to the manufacturing sector, with October seeing the first - albeit slight - increases in both input costs and output prices since the first half of 2019. Demand conditions across manufacturing and its supply chain look to be returning to something that resembles 'normal', and so more firms have started to up prices."
