The S&P Global Germany Manufacturing PMI rose to 54.1 in August 2026 from 52.2 in July, beating market expectations of 52.0, according to preliminary estimates. This was the seventh consecutive month of expansion and the fastest pace of growth since May 2022, driven primarily by stronger gains in output, new orders, and export sales, all of which grew at their quickest rates since early 2022.
Survey respondents pointed to firmer demand supported by inventory rebuilding, higher defense spending, and ongoing investment in data-center infrastructure. On the inflation side, input cost pressures remained high by historical standards but eased slightly compared with July, indicating that price pressures are becoming somewhat more manageable even as supply-side constraints persist. Business confidence also strengthened markedly.
