The headline PMI was kept below the neutral 50.0 threshold by its employment and stocks of purchases components, with output, new orders and supplier delivery times each having a positive influence.

Germany's manufacturing sector continued to lack dynamism as the fourth quarter got underway. A further, albeit slower, increase in output was seen alongside a slight uptick in new orders.

However, business expectations extended their recent slide to fall to the lowest so far this year, while workforce numbers were cut once again.

Buying levels were also pared back as firms looked to run down stocks, but lead times on purchases nevertheless increased for the second month running.

The latest data did however show a modest rise in prices charged by German goods producers, to end a five-month run of decline.

German manufacturers recorded higher production volumes for the eighth month in a row in October. Inflows of new orders across the German manufacturing sector rose fractionally at the start of the fourth quarter.

With latest data continuing to show a lack of pressure on capacity at manufacturers, factory employment was scaled back further during October.

October meanwhile saw a third straight monthly reduction in purchasing activity among German manufacturers. Average prices charged by German goods producers, on the other hand, showed a renewed rise in October.

As for the outlook, German manufacturers' optimism towards growth prospects in the year ahead waned to the lowest since December last year.

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