FX.co ★ Germany Manufacturing PMI Confirmed at 49 in June

The HCOB Germany Manufacturing PMI was confirmed at 49 for June 2025, marking the highest level since August 2022, although it still indicates a slight contraction in the overall manufacturing business climate. New orders saw their strongest increase since March 2022, driven by heightened demand domestically and internationally. Manufacturers also ramped up production for the fourth consecutive time, and purchasing activity increased for the first time in three years. Despite these positive developments, stocks of purchases and inventories after production continued to decline. Employment figures also saw reductions, and backlogs of work decreased, indicating underutilized capacity, while supplier delivery times showed improvement. On the pricing front, the average input costs for German manufacturers decreased amid supplier competition and a weaker US dollar. Factory gate prices fell for the second consecutive month. Lastly, business confidence reached its highest point since February 2022, buoyed by anticipated increased public sector spending and optimism for a broader economic recovery.