Germany Manufacturing PMI Revised Slightly Up

The S&P Global Germany Manufacturing PMI was revised slightly higher to 53.9 in September 2026 from a preliminary of 53.8, pointing to a slowdown from 54.3 in August which was the highest since May 2022. Still, the data showed sustained strong growth in both production levels and new orders. Also, goods producers were increasingly optimistic about the upturn continuing in the coming year, with expectations recovering to their highest since February. This was despite manufacturers facing not only a revival in inflationary pressures linked to increased energy prices, but also continued widespread supply delays. Meanwhile, there were signs of growing pressure on operating capacity at factories, as underlined by a marked and accelerated increase in backlogged orders, the steepest since April 2022. Accordingly, firms showed greater restraint on the job cutting front, with employment falling only marginally and at the slowest rate for three years in September.

The S&P Global Germany Manufacturing PMI fell to 53.8 in September 2026, down from a more than four-year high of 54.3 in August and slightly below market expectations of 54, according to a preliminary estimate. Nevertheless, the reading continued to signal a solid pace of expansion in the manufacturing sector. Manufacturers recorded another month of strong production growth, with the output index at 55.9, although the pace eased slightly from August’s 55-month high. This coincided with another robust increase in factory new orders. Meanwhile, employment moved closer to stabilisation, with payroll numbers recording their slowest decline since September 2023. On the price front, input-cost inflation remained elevated, driven in part by higher energy prices, while factory-gate price inflation eased to its lowest level in six months. Looking ahead, business sentiment improved.

The S&P Global Germany Manufacturing PMI was revised slightly higher to 54.3 in August 2026 from a preliminary of 54.1, compared to 52.2 in July. The reading showed that factory growth improved for a third straight month, reaching its strongest level since May 2022, driven by a solid rise in new orders, particularly in the intermediate goods sector, as well as stronger export sales. There was a range of factors driving demand, including increased defence spending, data centre build-outs and stockpiling. Also, the mood among businesses improved noticeably and is now the brightest seen since the Middle East conflict began. However, there was also a worsening of supply chain pressures, which in turn contributed to a marked rise in purchasing activity as firms looked to secure supplies of inputs. Average prices paid for purchases meanwhile rose at the slowest rate since the start of the Middle East conflict, but one that was still elevated by historical standards.