Latest data released by Markit/BME - 4 November 2020
- Composite PMI 55.0 vs 54.5 prelim
The preliminary report can be found here. A slight better revision but it doesn't take away from the fact that German services activity was already seen contracting in October, before 'lockdown light' was introduced to curb the virus spread.
The only bright spot for Germany - and the rest of Europe - is that the manufacturing sector is still carrying its weight for now at least. But amid tighter restrictions, it remains to be seen if overall activity will suffer towards the year-end. Markit notes that:
"With the coronavirus rearing its ugly head once again in October and measures being introduced to stop its spread, activity across Germany's service economy returned to contraction, led by a renewed slump in the Hotels & Restaurants sector. As many businesses close their doors again during November and virus cases continue to rise, a double dip in economic activity is looking increasingly likely.
"It remains to be seen exactly how the increase in COVID-19 cases and the anxiety it brings will affect those service sectors outside of the hospitality and leisure industry, but the initial signs look somewhat ominous with new business down almost across the board in October.
"A further slight rise in services employment was the main positive takeaway from October's survey, but these signs of improvement in the labour could be short-lived as the economy heads into a new, albeit 'lighter', lockdown."
