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Orders flood German private sector

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Staff Writer | October 24, 2017
Germany's private sector posted the highest increase in new orders in 6-1/2 years in October.
German manufacturing
Europe   The highest reading since April 2011
This was despite a slight fall in Markit's flash composite Purchasing Managers' Index (PMI) which tracks the manufacturing and services sectors.

It fell to 56.9 from 57.7 in the previous month.

The reading for the two sectors, which together account for more than two-thirds of the German economy, was well above the 50 mark that separates growth from contraction.

"Although the headline flash Composite Output PMI dipped slightly in October, the fundamentals remained strong and the economy has carried robust growth momentum into the closing stages of the year," said Phil Smith, principal economist at IHS Markit.

A sub-index measuring growth in new business showed the highest reading since April 2011, adding to signs that German factories will continue to support an economy that has been relying on domestic consumption and state spending for growth.