German manufacturing down in September

The survey noted that the impact of the Covid-19 outbreak was the fastest decline in output since May 2020.

According to the survey, customer uncertainty, widespread efforts to reduce inventories and a number of unfavourable conditions for demand, including weak construction activity, were among the key issues.

The final Purchasing Managers' Index (PMI) for the manufacturing sector rose to 39.6 in September from 39.1 in August, below the preliminary estimate of 39.8 and still well below the 50 level that separates growth from contraction.

It was concluded that weak demand in the sector was causing prices to fall, and in September both input costs and output wages continued to fall.