Slight uptick in German economy, overall manufacturing PMI at 42.3

The manufacturing sector, a critical component of the German economy, saw a lessening in its output contraction. This deceleration, the least severe since May, suggests a gradual recovery, even as the sector still faces significant challenges. Factors such as market uncertainty, tightened financial conditions, and destocking efforts by customers have contributed to a continued drop in demand for goods, according to the latest Hamburg Commercial Bank (HCOB) ‘flash’ PMI survey by S&P Global.

New work inflows also experienced a solid decrease for the seventh consecutive month, yet the rate of decline was the softest seen since June. This improvement was mirrored in both the manufacturing and service sectors, as well as in a slower fall in new export business.

Backlogs in the private sector continued to decrease, albeit at a less rapid pace than in previous months. The manufacturing sector led this decline, reflected in additional factory job losses, the rate of which was the highest in over three years.

Despite these challenges, business confidence in November rose to a five-month high. However, it remained significantly below the long-term average, influenced by ongoing concerns about economic conditions both domestically and internationally.

ALCHEMPro News Desk (NB)