Thursday 02 April, 2020

German economy in "rude health" as election campaign ends

News Desk
Published: 23 September 2017 Saturday, 05:09  AM

German economy in "rude health" as election campaign ends


Bonn, 23 September ( The German election campaign is ending on an upbeat economic note with Europe`s biggest economy in "rude health" after a key indicator measuring business activity surged to a six-and-a-half-year high this month.


The London-based IHS Markit research group said on Friday its closely watched purchasing managers` index (PMI) for both the German manufacturing and services sectors climbed from 55.8 in August to 57.8 points in September.


Based on a survey of about 1,000 companies, the PMI now stands at its highest reading since April 2011.


The economy has played only a scant role in the campaign for Sunday`s election, where Chancellor Angela Merkel is making a bid for a fourth term in office.


However, September`s PMI underlines how the solid state both of economic growth and the labour market have played into Merkel`s hands with opinion polls showing her conservative Christian Democrats and their Bavarian-based Christian Social Union allies holding a comfortable lead.


"September`s PMI survey showed Germany`s private sector economy in rude health, highlighting strong broad-based growth in both business activity and employment," said IHS Markit principal economist Phil Smith.


The strength of the German PMI also helped to drive the September PMI for the 19-member eurozone to a four-month high.


The rise in the German indicator was largely thanks to the robust state of the nation`s key manufacturing industry with the PMI for the sector hitting a 77-month high in September. The service sector PMI was at a six-month high.


"Germany`s labour market meanwhile continued to reap the benefits of growing workplace activity, with private sector employment rising at a robust pace that was broadly in line with the average seen across the year so far," the IHS Markit said.