German manufacturing shrinks in Sept as new orders slump - PMI

Actual 47.8 (Forecast 48.3, Previous 48.3)

German manufacturing activity contracted for a third month in a row in September, hurt by a deepening downturn in new orders as the soaring cost of energy set off alarm bells about the outlook for business, a survey showed on Monday.

Phil Smith, Economics Associate Director at S&P Global Market Intelligence, said "the soaring cost of energy, which has already led some businesses to cut production, caused alarm bells, with manufacturers' expectations for future output having plummeted in September following the shutdown of the Nord Stream 1 pipeline."

"If demand continues falling in the months ahead as businesses are expecting, the pass-through of higher costs will inevitably become more and more difficult, thereby squeezing margins."