German Factory Slump Eases in July

2025-07-24 07:43 By Kyrie Dichosa 1 min. read

The HCOB Germany Manufacturing PMI edged up to 49.2 in July 2025 from 49 in June, falling short of market expectations of 49.5, according to preliminary estimates.

The reading remained below the 50 threshold but signaled further signs of stabilization in the sector.

Manufacturing output rose for the fifth consecutive month, though the pace of growth slowed to a five-month low.

Export sales continued to support the sector, extending their growth streak to four months, while total new orders were broadly unchanged following a strong increase in June.

Employment declined again, but at a slower pace, indicating cautious optimism among manufacturers.

Meanwhile, factory gate prices fell for the third straight month—and at the fastest rate since February—reflecting lower input costs and favorable exchange rate effects.

Although business confidence eased from June’s high, it remained above the long-run average, supported by improved investment conditions and ongoing policy incentives.



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