According to preliminary estimates, the HCOB Flash Germany Composite PMI rose slightly to 47.8 in December 2024 from 47.2 in November, exceeding expectations of 47.5.
Germany PMI rises to 47.8, weak demand persists
This marked the sixth consecutive month of declining private sector activity, though the pace of contraction eased. Manufacturing saw a deeper downturn (42.5 vs. 43). Simultaneously, the services sector returned to growth (51 vs. 49.3). Weak demand persisted, with new business inflows falling at their fastest rate since September and work backlogs shrinking further. Employment also declined while inflationary pressures intensified.
Germany's outlook improves, manufacturing sentiment weak
Although output expectations for the coming year improved modestly from September's low, they remained below the long-term average, reflecting concerns about political uncertainty, economic stagnation, and challenges in the automotive sector. Manufacturing sentiment remained particularly weak.
