German Manufacturing PMI Contracts for First Time in Two Years

From Reuters:

Germany's manufacturing sector contracted in October for the first time in more than two years as new orders fell for a fourth month in a row, data showed on Wednesday in the latest sign Europe's bulwark economy is set for a sharp slowdown.
Markit's Purchasing Managers' Index (PMI) fell for a sixth consecutive month in October to hit 49.1 -- just above an initial estimate of 48.9 but below the key 50
line that divides growth from contraction.

It was the first time activity had shrunk since September 2009 and it was the lowest PMI reading since July 2009.

The reading for export orders fell even further in a fresh sign that weakness in key markets abroad and uncertainty due to the euro zone debt crisis is hurting German trade.

Berlin last month nearly halved its forecast for 2012 growth to 1 percent due to weaker expectations for exports.

Recent data shows the pace of expansion is easing. Industry orders and output are slumping, and business sentiment slid for the fourth month in a row in October, dipping to its lowest level since mid-2010.

http://www.reuters.com/article/2011/11/02/us-germanymanufacturing-idUSTRE7A11JA20111102