Economic Indicators

Downturn in German manufacturing may be bottoming out, PMI shows

2024.06.03 04:18

BERLIN (Reuters) – The downturn in Germany’s manufacturing sector, which accounts for about a fifth of Europe’s biggest economy, showed signs of bottoming out in May as output and new orders declined at a much slower pace than the month before, a survey showed on Monday.

The HCOB final Purchasing Managers’ Index (PMI) for German manufacturing rose to 45.4 in May from 42.5 in April, confirming a preliminary flash estimate and still below the 50 level that marks growth in activity.

The main boost came from new orders, which posted the weakest decline in two years in May, while the fall in output also softened to its slowest rate in more than a year.

“While not yet at an ideal point, there are signs of a turnaround,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

“New orders are still declining, but it looks like we could see an increase in demand in the coming months after more than two years of drought,” he added.

This aligns with an accelerated decline in inventory levels, de la Rubia said, suggesting many firms had underestimated demand and had to draw from their stocks of finished products and intermediate goods.

“Additionally, the fact that delivery times are not shortening as quickly as in the previous two months suggests a less severe demand situation,” he added.

© Reuters. FILE PHOTO: Mercedes-Maybach car bodies are lifted in

Although firms continued to show a willingness to reduce staff, indicating a lack of pressure on operating capacity, for an 11th consecutive month, optimism about growth prospects in the next 12 months rose to its highest since February 2022.

Surveyed companies cited hopes of a rebound in investment and demand helped by lower interest rates.



Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 68,869.45 0.49%
ethereum
Ethereum (ETH) $ 2,436.94 0.74%
tether
Tether (USDT) $ 0.999757 0.02%
bnb
BNB (BNB) $ 559.76 0.45%
solana
Solana (SOL) $ 162.08 1.01%
usd-coin
USDC (USDC) $ 1.00 0.01%
xrp
XRP (XRP) $ 0.512287 1.34%
dogecoin
Dogecoin (DOGE) $ 0.168452 12.10%
staked-ether
Lido Staked Ether (STETH) $ 2,437.13 0.70%
tron
TRON (TRX) $ 0.16244 1.59%
cardano
Cardano (ADA) $ 0.33173 0.61%
the-open-network
Toncoin (TON) $ 4.61 4.68%
shiba-inu
Shiba Inu (SHIB) $ 0.000018 5.70%
wrapped-steth
Wrapped stETH (WSTETH) $ 2,885.66 0.78%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 68,713.41 0.36%
avalanche-2
Avalanche (AVAX) $ 23.19 0.42%
weth
WETH (WETH) $ 2,437.25 0.74%
bitcoin-cash
Bitcoin Cash (BCH) $ 338.99 1.59%
chainlink
Chainlink (LINK) $ 10.53 0.47%
usds
USDS (USDS) $ 0.994891 0.65%
leo-token
LEO Token (LEO) $ 6.07 0.34%
polkadot
Polkadot (DOT) $ 3.83 1.98%
sui
Sui (SUI) $ 1.93 3.53%
litecoin
Litecoin (LTC) $ 67.00 1.19%
near
NEAR Protocol (NEAR) $ 3.70 2.39%
wrapped-eeth
Wrapped eETH (WEETH) $ 2,562.78 0.79%
aptos
Aptos (APT) $ 8.18 1.00%
uniswap
Uniswap (UNI) $ 6.91 0.55%
pepe
Pepe (PEPE) $ 0.000008 1.46%
internet-computer
Internet Computer (ICP) $ 7.13 0.18%
dai
Dai (DAI) $ 1.00 0.04%
bittensor
Bittensor (TAO) $ 428.39 0.80%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.16 2.70%
monero
Monero (XMR) $ 159.26 0.89%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.06%
stellar
Stellar (XLM) $ 0.092397 1.79%
whitebit
WhiteBIT Coin (WBT) $ 18.95 0.39%
ethereum-classic
Ethereum Classic (ETC) $ 17.94 1.52%
kaspa
Kaspa (KAS) $ 0.106164 2.41%
first-digital-usd
First Digital USD (FDUSD) $ 0.999048 0.05%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.298957 0.15%
blockstack
Stacks (STX) $ 1.50 3.76%
okb
OKB (OKB) $ 37.40 0.80%
dogwifcoin
dogwifhat (WIF) $ 2.04 0.34%
filecoin
Filecoin (FIL) $ 3.34 0.50%
crypto-com-chain
Cronos (CRO) $ 0.071909 0.47%
aave
Aave (AAVE) $ 129.62 0.72%
arbitrum
Arbitrum (ARB) $ 0.480709 0.31%
mantle
Mantle (MNT) $ 0.55602 0.37%
immutable-x
Immutable (IMX) $ 1.08 0.27%