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The PMIs fell more than expected in Germany, pulled down particularly by lower manufacturing confidence. Whereas, the levels are still high indicating a growth rate around 0,4 % in the third quarter of 2015, argues Nordea Bank.
Domestic demand appear to keep up the German incoming orders reflecting lower demand from emerging markets and China. This effect could be more than temporary since it is already visible in incoming orders.
The turbulence in China has had a negative effect on Euro area confidence, the effect being most visible in Germany. The manufacturing PMI of Euro zone fell to 52 from 52.3 and the services sector fell to 54 from 54.4, both still indicating solid growth in September, notes Nordea Bank.
