Germany has suffered its biggest slowdown in factory activity since the financial crisis, raising new fears that the eurozone’s biggest economy is heading for recession.
The latest flash composite purchasing managers’ index for Germany was 41.4 for manufacturing for September, down from 43.5 last month. This is the lowest reading since September 2009. Any figure below 50 represents contraction.
The figures for the German economy as a whole showed contraction for the first time in six and a half years. The reading was 49.1 in September, down from 51.7 in August. Manufacturing delivered the worst performance, but services also suffered a slowdown, falling to 52.5 from 54.8 last month.
The gloomy PMI figures shook investors, sending the euro down by 0.3 per cent against the…