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- Germany’s manufacturing activity shows moderate improvement
Germany’s manufacturing activity shows moderate improvement
The final seasonally adjusted Markit/BME Germany Manufacturing Purchasing Managers - a single-figure snapshot of the performance of the manufacturing economy - posted above the 50.0 no-change mark for the twentieth successive month in July, thereby signalling continued growth in Germany's goods-producing sector. Despite falling from June's 28-month high of 54.5 to 53.8, the index remained above its long-run series average (51.9).
Part of the fall in the headline PMI was attributed to a slower rise in new order intakes. Nevertheless, the latest increase in new work was the secondstrongest in 28 months. New export orders also continued to rise during the month, with nearly onequarter of the survey panel reporting an expansion. As was the case with total new business, the rate of increase slowed slightly.
Manufacturers reported an acceleration in output growth at the start of the third quarter, which they generally linked to rising demand and the processing of backlogs. The pace of expansion was the fastest since April 2014. Rising demand in turn helped companies to reduce their finished goods stocks further.
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