A sharp drop in new orders weighed on German manufacturing activity in June, worsening the outlook for Europe’s largest economy.
S&P Global’s final manufacturing PMI, which accounts for a fifth of the German economy, fell to 52 points in June from 54.8 in May, in line with analysts’ estimates.
The new orders index stood at 43.3%, down from 47 in May, and was the lowest since May 2020, falling further below the 50 mark that separates growth from contraction.
“We are seeing a rapid correction in underlying demand for German goods,” said an analyst at S&P Global Market Intelligence, adding that companies reported multiple problems in export sales.
With the backlog now on the decline, firms have downgraded their estimates for output over the next 12 months to their gloomiest level in two years.
Source: Capital
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