Previous 5.0 Composite PMI 5.1 vs .1 Initial Previous 5.7 The revision higher indicates that business is contracting more slowly than in September, but overall conditions are still quite moderate. This keeps the German economy in permanent recession, and a recession is approaching next year. Inflation remains a key concern at a time of sharp increases in input costs. SandP Global states that: „A contraction in the German economy in the fourth quarter looks inevitable, with October PMI data showing a continued decline in activity in both manufacturing and services amid pressure from broad demand. A toxic mix of high inflation, rising energy bills, rising interest rates and increased uncertainty have households and companies limiting consumption. „On a more positive note, the rate of decline in service activity at least eased somewhat and business expectations were less pessimistic than in September after the initial shock of the Nord Stream 1 pipeline closure. „On the service side, however, there was no relief on the cost front for businesses, as the rate of input price inflation has even accelerated again when reported increases in energy bills, increasing wage demands and financial costs. „Of course, given continued pressure on operating costs and a bleak economic outlook, service companies are showing greater caution in hiring. While the survey’s measure of employment has yet to track business activity and expectations into contraction territory, October’s reading was the lowest yet as of Sept. 2020 and showed that fewer positions are being filled