FX.co ★ Germany Manufacturing PMI Revised Lower

The HCOB Germany Manufacturing PMI was adjusted to 48.3 in May 2025, down from an initial estimate of 48.8 and slightly below April's figure of 48.4. This reflects the 35th consecutive month of contraction in the manufacturing sector. Despite this ongoing challenge, output managed a modest increase for the third consecutive month, driven by a rise in export orders, particularly from Europe and the United States. However, new orders overall experienced a slight decline, indicating softer domestic demand. The rate of job cuts continued but slowed to its least severe pace since January 2024. The reduction in purchasing activity and input stock levels also decelerated. Input prices fell sharply once more, though the decline was less pronounced than in April, due to reduced demand, lower oil prices, and a stronger euro. Manufacturers transferred these savings to consumers, resulting in additional reductions in factory gate prices amidst fierce competition. Supplier delivery times showed some improvement, and optimism regarding future output reached its highest level since early 2022.