German business activity slump suggests recession 'well underway' -PMI

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German business activity slump suggests recession 'well underway' -PMI
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Prelude to the Best Sommelier of Canada Contest | SaltWireBERLIN - Business activity in Germany contracted for a fourth straight month in October as manufacturing's downturn was matched by a renewed decline in services, a preliminary survey showed on Tuesday, suggesting a recession is well underway.

"Germany is kicking off the final quarter on a sour note," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, adding that with the drop in the composite PMI,"there is much to suggest that a recession in Germany is well underway." A steep rise in operating expenses, linked to wage demands and inflation, as well as a dip in new business had brought service providers below the 50 mark, according to the survey.

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