Germany Factory Growth Revised Slightly Higher

The S&P Global Germany Manufacturing PMI was revised slightly higher to 51.4 in April 2026 from a preliminary of 51.2, compared to a 46-month high of 52.2 in March. Germany's manufacturing sector saw further growth in both output and new orders, as well as longer supplier delivery times. However, goods producers expected the fallout from the war in the Middle East to eventually lead to lower production in the coming months. The darkening business outlook reflected concerns about the impact of rising inflation, supply chain disruption and elevated uncertainty. April saw manufacturing input costs increase at the fastest rate in over three-and-a-half years, while reports of supply delays reached a level not seen since mid-2022.

The S&P Global Germany Manufacturing PMI fell to 51.2 in April 2026 from 52.2 in the prior month, broadly in line with forecasts of 51.3, according to flash estimates. The data pointed to a slowdown in manufacturing activity following a solid expansion in March, which was strongest pace since May 2022. Both output and new orders decelerated sharply as geopolitical uncertainty dampened demand and led to greater customer reluctance. Employment fell once again, coinciding with a reduction in backlogs of work. Meanwhile, supplier performance deteriorated at its fastest pace since mid-2022. On the price front, higher prices for materials such as metals and plastics resulted in very strong cost pressures, the highest in the sector for over three-and-a-half years. Output charge inflation hit a 39-month high, as businesses tried to pass some of the higher costs on to clients. The outlook for the year ahead turned pessimistic amid heightened uncertainty, rising prices, and supply issues.

The S&P Global Germany Manufacturing PMI was revised sharply higher to 52.2 in March 2026 from a preliminary of 51.7 and compared to 50.9 in February. The reading pointed to the strongest growth in the manufacturing sector since May 2022, with output and new orders both seeing stronger rates of growth, amid a boost to demand from customers looking to mitigate disruption from the conflict in the Middle East. also, there was a marked deterioration in supplier performance largely reflecting supply disruption stemming from war, which notably included delays to freight from Asia. The extent to which lead times lengthened was the greatest seen since July 2022. Meanwhile, German manufacturers also faced a surge in cost pressures with input price inflation jumping to its highest since October 2022 due to energy and factory gate prices also accelerated. In addition, there were supply chain delays and business expectations retreated sharply to four-month lows.