FX.co ★ Germany Manufacturing PMI Signals Slowing Downturn in January

Germany's HCOB Manufacturing PMI increased to 48.7 in January 2026, up from 47.0 in December and surpassing market expectations of 47.8, according to preliminary data. This latest figure suggests a deceleration in the contraction of the manufacturing sector, as output shifted back to growth after experiencing its first contraction in ten months in December, albeit with only slight expansion. New orders saw a modest increase following a two-month decline, aided by a less pronounced decrease in export orders. However, employment levels continued to fall. In terms of pricing, input cost inflation surged to its highest level in 37 months, while the average prices of factory goods at the production stage declined gradually.