Germany’s S&P Global Manufacturing PMI rose to 51.7 in March 2026 from 50.9 in February, beating market expectations of 49.5, according to preliminary data. This is the strongest expansion in the country’s manufacturing sector since June 2022, underpinned by the fastest increase in output in more than four years and the sharpest rise in new orders in four years.
Firms indicated that the conflict in the Middle East had boosted demand, as customers sought to avoid potential supply disruptions and build up inventories. At the same time, supply chain pressures intensified: supplier delivery times lengthened for a seventh consecutive month, marking the most pronounced delays since July 2022.
Input cost inflation accelerated to its highest level since October 2022, driven by higher energy, fuel, transportation, wage, and raw material costs, while output price inflation reached a three-year high. Despite the current upturn, business confidence deteriorated amid persistent concerns about the broader economic fallout from the war.
