Germany’s manufacturing sector has seen a strong start to the third quarter, with business activity expanding in July at its joint-strongest pace since May 2022. The S&P Global final Purchasing Managers’ Index (PMI) for German manufacturing rose to 52.2 in July, up from 50.3 the month before.
Output rose at its fastest rate since February 2022, driven by stronger demand, higher capacity utilization, and efforts to clear backlogs. New orders increased for a second consecutive month, driven by export sales that grew at the strongest rate since February 2022.
Cost pressures also moderated, with input price inflation slowing to its lowest since February. However, economists warn that this performance may not be sustainable without a resolution to the conflict in the Middle East, due to the corresponding volatility in oil prices and uncertainty.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
