Economic Buzz: Germany Manufacturing PMI Contracts In July

1 Aug 2022 , 04:04 PM

July saw Germanys headline Manufacturing PMI slip into contraction territory for the first time in over two years, led by a deepening downturn in new orders across the sector. Factory production levels likewise showed a sustained decline, whilst goods producers pared back their purchasing activity for the first time since mid-2020 amid a rapid build-up of inventories and a deteriorating outlook. The fall in demand for inputs was reflected in an easing of supply chain pressures and a further softening of the rate of cost inflation. Combined with generally weaker demand for manufactured goods, this led the rate of increase in factory gate prices to slow to a 15-month low. The headline seasonally adjusted S&P Global / BME Germany Manufacturing Purchasing Managers Index (PMI) – a single figure measure of sector performance derived from measures of new orders, output, employment, suppliers delivery times and stocks of purchases – registered 49.3 in July, down from 52.0 the month before and below the 50.0 no-change threshold for the first time since June 2020. Powered by Commodity Insights