Latest data released by Markit/BME - 4 November 2021
- Composite PMI 52.0 vs 52.0 prelim
The preliminary report can be found here. No change to the initial estimates as this reaffirms the slowest growth in the German services sector in six months.
Of note, businesses highlighted a drag on activity from supply-side issues and inflationary pressures continued to mount with surging costs driving a record rise in prices charged by services firms on the month. Markit notes that:
"The service sector's recovery continued to lose steam in October, with business activity showing the smallest rise for six months.
"Surveyed firms tell us that not only is momentum steadily being lost as activity levels normalise, but that supply-chain issues and staffing capacity constraints are also holding back activity in some cases.
"Economic growth disappointed in the third quarter and judging by the results from October's survey data and the ongoing supply chain problems, GDP growth looks set for a further slowdown in the final quarter of the year.
"Encouragingly, services firms reported another solid rise in workforce numbers in October to keep the labour market recovery going at a decent clip. The service sector is looking increasingly important to the near-term employment outlook, with data showing a sustained slowdown in factory jobs growth.
"Price pressures intensified further at the start of the fourth quarter, driven by a surge in energy costs. Goods inflation continues to run well ahead of that of services, but the latter is nevertheless now at a record high as firms in the sector pass on a multitude of increasing costs to customers."
