The report from IHS Markit revealed on Wednesday that Germany’s business activity expanded in September, albeit at a slower pace than in August, as a sharp rise in manufacturing production was partially offset by a setback in services activity.

According to the report, the Flash Germany Manufacturing PMI surged to 56.6 in September from 52.2 in August, with each sub-component imparting a positive directional influence. That was the highest reading since July 2018. Economist had forecast the index to come in at 52.5.  

Meanwhile, the Flash Germany Services PMI Activity Index fell to 49 from 52.5 in August. That marked the first decline in services business activity in three months and was well below economists’ forecast for 53.

The headline Flash Germany Composite Output Index came in at 53.7 in September, down from August’s 54.4 and further below the near-two year high seen in July, pointing to a continued loss of momentum in the recovery from the COVID-19 shutdown.