Germany Manufacturing Contracts for 1st Time in 10 Months

2026-01-02 09:14 By Agna Gabriel 1 min. read

The HCOB Germany Manufacturing PMI fell to 47 in December 2025 from 48.2 in November and below the preliminary estimate of 47.7, signalling the sharpest contraction in ten months.

Output fell for the first time after nine months of growth, driven mainly by weaker demand.

New orders fell for the third time in four months, with export sales declining at their fastest pace since December 2024.

In response, manufacturers cut employment, purchasing activity and input stocks more aggressively, underscoring a defensive stance.

At the same time, supplier delivery times lengthened for a fourth month, and input costs rose for the first time in nearly three years, largely due to higher metal prices.

However, intense competition prevented firms from passing these costs on, leading to further reductions in factory gate prices.

Despite current weakness, business sentiment improved, supported by expectations of new products and higher defence and infrastructure spending.



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