Markit's Germany Manufacturing Purchasing Managers Index (PMI) was at 55 points in October this year, a 33-month high, up from September’s 54.3 points.
October data signalled a sharp increase in production volumes at German manufacturing companies, which they generally linked to rising demand from both the domestic and foreign markets. Moreover, the rate of output growth was among the strongest seen over the past two-and-a-half years.
Meanwhile, stocks of finished goods declined again in October. Some companies used existing stock to satisfy rising demand, according to anecdotal evidence.
“Today’s survey results provide further positive news for German manufacturers, with the PMI reaching its highest level since the beginning of 2014. The improvement in the sector was fuelled by a marked increase in new order intakes, which in turn led to a solid expansion in production. Strong demand from export markets contributed to the rise in overall new business during the month with Asia and the US specifically mentioned by our panellists as sources of growth,” stated Oliver Kolodseike, economist at Markit.