Shrinking German business activity points to third-quarter contraction

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BERLIN, Sept 22 - German business activity fell for the third consecutive month in September due to a sustained decline in demand for goods and services, pointing to a"deep" economic contraction in the quarter, a preliminary survey showed on Friday.

"The HCOB composite PMI confirms our view that Germany has entered once again into contraction during the current quarter," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. He added that a"rather deep" 1.0% contraction on the quarter is forecast. The manufacturing PMI rose slightly to 39.8 from 39.1 in August but remained deep in contraction territory, the survey showed.

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