Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

NEWS

Downturn in German manufacturing may be bottoming out, PMI shows

Downturn in German manufacturing may be bottoming out, PMI shows

BERLIN (Reuters) – The downturn in Germany’s manufacturing sector, which accounts for about a fifth of Europe’s biggest economy, showed signs of bottoming out in May as output and new orders declined at a much slower pace than the month before, a survey showed on Monday.

The HCOB final Purchasing Managers’ Index (PMI) for German manufacturing rose to 45.4 in May from 42.5 in April, confirming a preliminary flash estimate and still below the 50 level that marks growth in activity.

The main boost came from new orders, which posted the weakest decline in two years in May, while the fall in output also softened to its slowest rate in more than a year.

“While not yet at an ideal point, there are signs of a turnaround,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

“New orders are still declining, but it looks like we could see an increase in demand in the coming months after more than two years of drought,” he added.

This aligns with an accelerated decline in inventory levels, de la Rubia said, suggesting many firms had underestimated demand and had to draw from their stocks of finished products and intermediate goods.

“Additionally, the fact that delivery times are not shortening as quickly as in the previous two months suggests a less severe demand situation,” he added.

Although firms continued to show a willingness to reduce staff, indicating a lack of pressure on operating capacity, for an 11th consecutive month, optimism about growth prospects in the next 12 months rose to its highest since February 2022.

Surveyed companies cited hopes of a rebound in investment and demand helped by lower interest rates.

 

(Reporting by Miranda Murray; Editing by Susan Fenton)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts