Germany manufacturing PMI revised up to 43, signals slower decline

The HCOB Germany Manufacturing PMI was revised upward to 43 in October 2024, up from a preliminary reading of 42.6 and significantly improved from a twelve-month low of 40.6 in September.

Germany manufacturing PMI revised up to 43, signals slower decline

This figure indicates that the German manufacturing sector continues to be in contraction, although the pace of decline has slowed. Output, new orders, employment, and inventories decreased slower than in September, while business expectations became less pessimistic. However, there was a notable acceleration in the decline of output prices across the goods-producing sector, as companies reported intense competition for new contracts and felt pressured to pass on cost savings from lower input prices. "The mood in German industry remained bleak in October.

Signs of economic trough as PMI shows slight improvement

However, there are indications that an economic trough may have been reached. Although the headline PMI remained well within recessionary territory, it did show a slight improvement from an extremely low level," said Jonas Feldhusen, Junior Economist at Hamburg Commercial Bank.