German Manufacturing Sector Stalls in May

2026-05-21 07:42 By Joana Ferreira 1 min. read

Germany’s S&P Global Manufacturing PMI fell to 49.9 in May 2026 from 51.4 in April, below market expectations of 51.0, preliminary data showed.

The reading signals contraction in the manufacturing sector, its weakest performance in four months, as the Middle East war-related boost from stock-building and efforts to preempt price hikes and supply shortages fades.

Factory output rose only fractionally, marking the weakest growth in the sequence that began at the start of the year, while new orders declined for the first time since December.

Customer hesitancy, driven by economic and geopolitical uncertainty and reduced spending power from rising prices, weighed on demand.

Employment fell at a faster pace amid an accelerated reduction in backlogs.

Input cost inflation accelerated, with firms reporting higher expenses for commodities, energy, fuel, and transportation, exacerbated by supply shortages.

Finally, business confidence edged higher but remained subdued.



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