Drop in demand weighs on German manufacturing, outlook darkens -PMI
Reuters
Published Jul 01, 2022 04:02AM ET
BERLIN (Reuters) - A sharp fall in new orders weighed on German manufacturing activity in June, darkening the outlook for Europe's largest economy, a survey showed on Friday.
S&P Global (NYSE:SPGI)'s final Purchasing Managers' Index (PMI) for manufacturing, which accounts for about a fifth of Germany's economy, fell to 52.0 in June from May's final reading of 54.8, in line with analysts' expectations and with a flash estimate.
An index on new orders came in a 43.3, falling from 47.0 in May to hit the lowest level since May 2020 and dropping further below the 50 mark, which separates growth from contraction.
"We're seeing a rapid correction in underlying demand for German goods," said Phil Smith, economics associate director at S&P Global Market Intelligence, adding that firms reported "multiple headwinds to export sales".
"With backlogs now in decline, firms have downgraded their expectations for output over the next 12 months to the gloomiest for over two years," he said.
The survey pointed to some relief on the inflation front, with rates of increase in both input costs and output prices slowing for a second straight month.
"However, it's difficult to untangle any alleviation of pressure coming from the supply side from the effects of weaker demand," Smith added.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.