Germany July final manufacturing PMI 52.2 vs 52.2 prelim
- Prior was 50.3
Key findings:
- Manufacturing sector enjoys strong start to Q3 as cost pressures ease
- Output growth accelerates to highest since February 2022, buoyed by export sales
- Input cost inflation eases to weakest since outbreak of Middle East war
- Year-ahead business expectations remain subdued
Comment:
Phil Smith, Economics Associate Director at S&P Global Market Intelligence:
“Germany’s manufacturing sector made an impressive start to the third quarter, with a notable improvement in export sales helping drive the strongest production growth in nearly four-and-a-half years. An easing of cost inflation to the weakest seen since the outbreak of the Middle East war, primarily linked to the drop in oil prices through June and into early July, was likely a supporting factor too.
“Given the volatility in oil prices in recent weeks and the still highly uncertain situation in the Middle East, it’s difficult to see this kind of performance being sustained without a resolution to the hostilities.
“Indeed, business expectations remain subdued in the manufacturing sector, staying below the level seen prior to the outbreak of the conflict. Supply chain disruption remains an ongoing risk, with delays having worsened again in July due in part to the bottlenecks forming in the global electronics industry."
This article was written by Giuseppe Dellamotta at investinglive.com.