BERLIN, Nov 4 (Reuters) – Germany’s services sector expanded for a second straight month in October, but at a slower pace as new business fell and weaker demand weighed on hiring, a business survey showed on Wednesday.
• The S&P Global Germany Services PMI Business Activity Index fell to 52.5 from 52.9 in September but held well above the 50-point mark separating growth from contraction
• “The recovery in the service sector hit a speed bump in October, with the latest PMI survey signalling a loss of momentum as firms recorded a slight softening of demand,” said Phil Smith, economics associate director at S&P Global Market Intelligence
• The S&P Global Germany Composite PMI Output Index, which combines services and manufacturing sector data, edged down to 53.4 from September’s 11-month high of 53.8
• Total new business in the services sector ticked down after rising throughout the third quarter, with firms citing delayed customer decisions and pressure on household finances. New export business fell for the first time in three months at the quickest pace since June
• Employment fell for the first time since July, though only modestly, and the pace of job losses was the quickest since April
• Cost pressures eased for the first time in four months after fuel discounts were reinstated, while firms raised prices at a slower pace than in September. Still, both input cost and output charge inflation remained elevated by historical standards
• Business expectations for the year ahead improved to their highest since February, with 34% of firms expecting activity to rise
(Reporting by Reuters; Editing by Joe Bavier)
