FX.co ★ Germany Manufacturing Activity Rises for 1st Time in Nearly 2 Years

Germany's Manufacturing PMI, as reported by the HCOB, rose to 48.3 in March 2025, up from 46.5 in February. This marks the highest reading since August 2022 and aligns with preliminary forecasts. The uptick in production, the first in nearly two years, was fueled by an increase in new orders, particularly within the intermediate goods sector. Business optimism reached a peak not seen in three years, buoyed by anticipated hikes in infrastructure expenditure. Despite this, employment figures continued to decline, though the rate of decline has slowed. Costs for inputs and manufacturer prices experienced a slight decrease, attributed to improved supply chain efficiency and reduced freight charges. While there was an upswing in domestic demand, export sales continued to exhibit weakness.