German Manufacturing PMI Hits Highest Level Since 2022
2026-03-24 08:48
By
Joana Ferreira
1 min. read
Germany's S&P Global Manufacturing PMI climbed to 51.7 in March 2026, up from 50.9 in February and exceeding market expectations of 49.5, according to preliminary data.
This marks the strongest expansion in Germany’s manufacturing sector since June 2022, driven by the fastest growth in production since February 2022 and the quickest rise in new orders in four years.
Firms reported that the Middle East conflict spurred demand, with customers seeking to avoid supply disruptions and build up inventories.
However, supply chain pressures intensified, with lead times lengthening for a seventh consecutive month, the most since July 2022.
Input cost inflation surged to its highest since October 2022, fueled by rising energy, fuel, transportation, wages, and raw material costs, while output price inflation hit a three-year peak.
Despite the current growth, business sentiment weakened due to ongoing concerns about the war’s impact on the economy.