German PMI Composite Output Index declined in August, registering the steepest drop in a little over three years, S&P Global and Hamburg Commercial Bank (HCOB) revealed on Wednesday. The figure stood at 44.7, going down from last month's 48.5.
Services PMI Activity Index plunged to its lowest level in nine months, coming in at 47.3 and falling from the July reading of 52.3. Manufacturing PMI slid to a two-month low, but coming slightly higher than the previous month's figure to land at 39.1
"Any hope that the service sector might rescue the German economy has evaporated. Instead, the service sector is about to join the recession in manufacturing, which looks to have started in the second quarter," HCB Chief Economist Dr. Cyrus de la Rubia stated. "Stagflation is an ugly thing," he added.