German manufacturing PMI remains sluggish, firmly

S&P Global commented on the final value of Germany's manufacturing PMI in August: the downturn in Germany's manufacturing industry continued into August, and the decline in output accelerated amid a rapid decline in new orders. Commodity producers remain pessimistic about the outlook for the year ahead, although slightly less pessimistic than in July. At the same time, weaker demand across the industry has led to lower input costs and factory-gate prices, albeit at a slower pace than in July. The HCOB German Manufacturing PMI recorded 39.1 in August, close to July’s 38.8. While the index rose slightly, thanks almost entirely to a component of supplier delivery times, it hit its second-lowest level since May 2020 and remained firmly in contraction territory below 50.