While service sector business activity slowed, manufacturing recorded its eighth consecutive monthly fall and the fastest rate of decline since July 2012, while private sector job creation stalled after nearly six years of growth and September manufacturing orders suffered from the steepest drop in more than a decade. Commenting on the data, ISH Markit Principal Economist, Phil Smith said: “Another month, another set of gloomy PMI figures for Germany, this time showing deadline Composite Output Index at its lowest since October 2012 and firmly in contraction territory.
“The manufacturing numbers are simply awful. All the uncertainty around trade wars, the outlook for the car industry and Brexit are paralysing order books, with September seeing the worst performance from the sector since the depths of the financial crisis in 2009.”
Meanwhile, the UK Supreme Court’s ruling on the legality of Boris Johnson’s prorogation of parliament is expected to be announced on Tuesday morning.
Foreign Secretary Dominic Raab said that the government will “abide by the ruling” while Conservative MP Rory Stewart gave a contradictory statement, saying it was “unlikely” the Prime Minister would respect the court’s ruling.
Mr Raab failed to rule out the possibility of the Prime Minister proroguing parliament again if the Supreme Court decision went against the government.
Looking ahead, if the court rules against the government it could increase political uncertainty, but if parliament reconvenes early as a result, the opportunity for opposition MPs to combat a no-deal outcome could offer a glimmer of hope to GBP investors.