Germany Manufacturing PMI Revised Slightly Up

Germany’s S&P Global Manufacturing PMI was revised higher to 50.1 in May 2026 from a preliminary of 49.9, continuing to point to nearly stabilization in the manufacturing sector, as uncertainty and soaring costs associated with the war in the Middle East acted as headwinds to demand. It is also the lowest reading in four months, with goods producers recording a fall in new orders for the first time in 2026 so far, whilst also facing the biggest price increase since June 2022. Also, output growth softened for the second month running and job cuts deepened. Meanwhile, business expectations remained relatively muted, although they did improve slightly from April's recent low.

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.

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.