Germany Manufacturing PMI Edges Up
2024-10-24 07:40
By
Joana Taborda
1 min. read
The HCOB Flash Germany Manufacturing PMI rose to 42.6 in October 2024 from 40.6 in September which was the lowest in about a year, beating forecasts of 40.8.
Despite the increase, the PMI continues to point to a deep contraction in the manufacturing sector.
There were reports of customers refraining from spending due to heightened economic uncertainty alongside weak demand from the auto sector.
Inflows of new business fell sharply and factory gate charges posted the steepest drop for more than 15 years.
In addition, manufacturers faced another notable drop in purchase prices, linked to competitive pressures.
Sentiment remained negative and was little changed from September’s 11-month low.
“Manufacturing will most probably continue to be in a recession in the fourth quarter, but it may start the next year on a better footing, although this assessment based on a one-month improvement should be taken with caution", Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said.