German stocks experienced a decline on Monday following a survey that highlighted an acceleration in the downturn of the country's manufacturing sector, which contributes around one-fifth to Europe's largest economy. According to the HCOB final Purchasing Managers' Index (PMI), the index fell to 42.4 in August from 43.2 in July, primarily due to a significant drop in incoming orders.
In addition, a separate survey indicated that manufacturing activity within the Eurozone continued to be entrenched in contraction during August.
The benchmark DAX index fell by 30 points, or 0.2 percent, to 18,876 after closing slightly lower on Friday.
Meanwhile, the U.S. dollar reached a two-week high against the euro ahead of the release of several crucial U.S. economic data points this week, including the non-farm payrolls report expected on Friday.
