FX.co ★ German Manufacturing Nears Stabilization

In June 2025, the HCOB Germany Manufacturing PMI increased to 49.0 from 48.3 in May, aligning with market forecasts, according to preliminary estimates. This rise indicates the mildest contraction in the sector since August 2022, moving closer to stabilization. The improvement was largely attributed to output growth, which recorded its most significant increase since March 2022, marking four consecutive months of expansion. Additionally, manufacturers experienced a strong uptick in foreign demand, alongside encouraging signs of strengthening domestic orders. Despite these positive trends, subdued capacity pressures resulted in further job cuts in June. The pace of workforce reductions accelerated for the first time in four months, reaching its highest rate since February. On the pricing front, output charges were lowered, reflecting another significant decline in input costs. Looking forward, business confidence has strengthened, surpassing its historical average and achieving its highest level since February 2022.