The HCOB Germany Manufacturing PMI was revised slightly lower to 49.1 in July 2025 from a preliminary of 49.2 and compared to 49 in June, continuing to point to a deterioration in manufacturing business conditions.
However, it is the highest reading for nearly three years, with positive influences coming from employment, stocks of purchases and supplier delivery times, offsetting the slower rises in both output and new orders.
On the price front, German manufacturers reported a further drop in input costs, citing a lack of pricing power among suppliers and the influence of a strong euro.
Competitive pressures meant that goods producers passed on cost savings to customers, resulting in a third straight monthly reduction in average factory gate charges.
Meanwhile, goods producers remained relatively optimistic about growth prospects in the year ahead, although the degree of confidence was down slightly from June’s recent high.