German composite PMI beats expectations in October

The latest Markit Purchasing Managers’ Index showed the factory index declined from 52.3 in September to 51.6, slightly below the 51.7 reading analysts had forecast.

Sluggish demand in emerging markets, including Russia and China, saw new orders grow at their slowest pace since July.

However, the services index in the country rose to a seven-month high of 55.2, up from the 54.1 reading in the previous month and above forecast for a 53.9 reading.

Growth in the services sector helped driving the composite gauge up from 54.1 to 54.5, ahead of analysts’ expectations for a 53.7 reading.

“Today’s numbers signal a note of caution for German manufacturers,” said Markit's economist Oliver Kolodseike.

“Moreover, the combination of rising stocks-of-finished-goods levels and slower new-order growth suggests that companies may scale down their production in coming months.”