BERLIN (dpa-AFX) - Germany's private sector growth hit a 16-month high in September on a renewed upturn in the service sector, flash survey results from S&P Global revealed on Tuesday.
The HCOB composite output index rose to 52.4 in September, while it was expected to remain unchanged at 50.5.
The reading stayed above the 50.0 threshold for a fourth straight month and signaled the quickest expansion in the private sector since May 2024.
The stronger performance reflected a renewed increase in the service sector business activity that followed a slight decrease in August. The services Purchasing Managers' Index rose to an eight-month high of 52.5 from 49.3 in the previous month. The reading was also above forecast of 49.5.
By contrast, the factory PMI declined to 48.5 from 49.8 in the previous month. The reading was seen at 50.0.
'The overall economy is growing at its fastest clip in 16 months,' Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.
'But do not get too comfortable. Orders are under pressure, especially in manufacturing but also in services, signalling another slowdown could be on the horizon,' de la Rubia added.
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