Strong German Factories Offset Damage to Services From Virus

German manufacturing continued its solid recovery from lockdowns earlier this year, offsetting growing weakness elsewhere in the economy.

IHS Markit’s Purchasing Managers’ Index for factories jumped to 58 in October, a 2 1/2-year high, from 56.4 in September. That stood in stark contrast to the services gauge, which fell to 48.9, below the key 50 level that divides expansion from contraction.