German services sector grows in September on strong demand, PMI shows

BERLIN, Oct 5 — Germany's service sector saw solid ​growth in business activity in September, supported by a sustained recovery in demand, a business survey ‌showed on Monday.

The final S&P Global Germany Services Purchasing Managers' Index ⁠rose to 52.9 in ​September from 49.7 in ⁠August, reaching the highest reading since just before ‌the start of ‌the Middle East conflict in February.

• The ⁠upturn came despite a revival ⁠in inflationary pressures across the sector.

• Employment rose for the second month running, in line with signs of growing capacity pressures and hopes of further growth in activity ahead.

• Reports from surveyed ‌businesses pointed to improved demand ​from clients, including signs of greater investment spending.

• "The rise in business activity in September reinforces the tentative signs of recovery we've been seeing in the services sector for a few months now," said Phil Smith, S&P Global Market Intelligence economics associate ​director.

• The final S&P Global Germany Composite PMI, ‌which includes services ‌and ⁠manufacturing, rose to 53.8 in September, up from 51.8 in August, reaching its highest reading for almost a year.

• A reading above 50 signals growth, while ‌one below it ​indicates contraction. The further it ‌goes below 50, ⁠the faster ​the rate of contraction.

(Reporting by Maria Martinez; Editing by ​Toby Chopra)

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