Germany's Private Sector Growth Eases

(RTTNews) - Germany's private sector growth softened in October, suggesting that the recovery remains fragile, survey data from S&P Global showed Friday.

The flash composite output index registered 52.8 in October, down from an 11-month high of 53.8 in September and economists' forecast of 53.3.

Nonetheless, the score signaled solid pace of expansion by historical standards. The slowdown was broad-based by sector. Manufacturing production continued to grow, albeit one that was the weakest since July. Meanwhile, services activity expanded for the second straight month.

The services Purchasing Managers' Index fell more-than-expected to 51.7 in October from 52.9 in the previous month. The reading was seen at 52.5.

The factory PMI stood at 54.2 compared to 53.9 in September. The score was forecast to fall moderately to 53.5.

"October's flash PMI results encouragingly showed a sustained upturn in business activity across Germany, although a slowdown in growth underscored that the recovery in the eurozone's largest economy remains fragile," S&P Global Market Intelligence Economics Associate Director Phil Smith said.