Germany: the manufacturing PMI disappoints expectations when falling to 48.3 in May, although it shows encouraging signs

He PMI manufacturing from Germany has backed up a tenth in May, falling to 48.3 points Since the previous 48.4, as published by the Commercial Bank Hamburg through S&P Global. The indicator has disappointed expectations, since an increase was expected to 48.8. The German manufacturing sector remains in contraction territory for 35 consecutive months, since June 2022.

He Dr. Cyrus de la blonde, chief economist of the Commercial Hamburg BankHe commented: “Most people have become accustomed to the pessimistic headlines of the industrial sector that good news often go unnoticed. That is why it is worth looking beyond the main PMI, which fell slightly and is still in contraction territory. The general panorama shows some encouraging signals. Production has increased for the third consecutive month, and foreign orders have been increasing two consecutive months. In addition, the rebound of production is not limited to a single sector, but is reflected in all areas, in capital goods, intermediate goods and consumer goods. This is a clear sign of a generalized improvement. It is also positive that companies have barely reduced their purchases of intermediate goods, after monthly falls since mid -2022. The most surprising thing is perhaps that business trust is the most optimistic since February 2022. This is probably due to the formation of a new government, the promise of tax exemptions to investment, a large infrastructure package and plans to boost defense spending. “

Euro reaction

He Euro has reached maximum of five and a half weeks after the data, rising to 1,1439. At the time of writing, the par quotes over 1,1417, winning 0.61% daily.