Europe is at the epicentre of a global manufacturing slump, according to a closely watched survey that showed the bloc’s two biggest economies are struggling to remain competitive.
Activity in Germany’s key manufacturing sector fell to its lowest level in two years amid soaring energy costs that continue to push up prices. Last month, the Kremlin announced an indefinite shutdown of the key Nord Stream 1 gas pipeline that links Russia to Germany, which drove a spike in prices.
Germany’s manufacturing activity fell to 47.8 in September, from 49.1 the previous month, according to the S&P Global PMI, taking it further below the 50 level that divides growth from contraction.
The PMIs – yes, that means shrinking. But it’s not a slump. That’s a shaving off, not a slice and certainly not a chunk.
Slumps are when PMIs get down into the 30s……