Germany: Manufacturing PMI at 18-month low

German processing companies announced lower growth and much more pessimistic expectations for factory activity in March, as the war in Ukraine affected export demand and led to new supply bottlenecks.

S&P Global’s manufacturing PMI, which accounts for one-fifth of Europe’s largest economy, fell to an 18-month low of 56.9 from 58.4 in February.

Analysts expected the index to reach 57.6 points.

After easing in previous months, supply delays worsened, inflation picked up again and commodity producers became pessimistic about their outlook for next year, for the first time since the first wave of the coronavirus.

“Manufacturing companies have been hit by supply and demand problems,” said Phil Smith of IHS Markit.

Producer goods were again under pressure from rising input costs, with inflation rising for the first time in five months amid rising global commodity prices.