Germany’s manufacturing sector showed signs of stabilisation in January, as the HCOB Germany Manufacturing Purchasing Managers’ Index (PMI) rose to 49.1. The latest reading moves closer to the 50-point threshold that separates contraction from expansion, suggesting that the downturn in German industry may be losing momentum.
The January figure compares with a previous level of 47.0, indicating a notable improvement within the same month-long period. While the index remains below 50, the upward move points to a softer contraction and hints that conditions in the manufacturing sector could be starting to turn a corner.
The updated data, released on 2 February 2026, will be closely watched by markets and policymakers as they gauge whether Germany’s industrial base is on the path toward a more sustained recovery, or merely experiencing a temporary easing in weakness.
