BERLIN (Reuters) – German manufacturers’ new orders grew at their fastest pace in more than three years in June, driven by rising demand both domestically and internationally, a business survey showed on Tuesday.<\/p>\n
The HCOB final Purchasing Managers’ Index (PMI) for German manufacturing, compiled by S&P Global, rose to 49.0 in June from 48.3 in May, its highest level since August 2022 but still slightly below the 50 level denoting growth.<\/p>\n
New orders rose for the third time in four months, with export orders particularly strong driven by demand from China, Europe, and the United States.<\/p>\n
Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, described the rise as “encouraging” as it showed that it was not just U.S. importers trying to pre-empt higher tariffs, but also domestic demand showing signs of life once again.<\/p>\n
However, the strength of the recovery is somewhat called into question by the accelerated pace of job cuts, he added.<\/p>\n
Factory employment continued to decline, marking the most significant drop in four months, which along with reductions in stocks of purchases kept the PMI in contraction territory.<\/p>\n
The decline in workforce numbers, now stretching to two years, reflects reduced capacity utilisation and efforts to boost productivity, according to the survey.<\/p>\n
Business expectations improved, reaching their highest level since February 2022, with optimism linked to anticipated economic upturns and the government’s investment plans.<\/p>\n
“Signs of a recovery, albeit a somewhat sluggish one, are increasing,” said de la Rubia.<\/p>\n
“Overall, the headline PMI is pointing upward and is on the verge of crossing into expansion territory.”<\/p>\n
(Reporting by Miranda Murray; Editing by Hugh Lawson)<\/p>\n","protected":false},"excerpt":{"rendered":"BERLIN (Reuters) – German manufacturers’ new orders grew at their fastest pace in more than three years in…\n","protected":false},"author":2,"featured_media":228819,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5310],"tags":[90025,38636,15397,2000,299,90023,1824,38638,90024],"class_list":{"0":"post-228818","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-germany","8":"tag-business-survey","9":"tag-cyrus-de-la-rubia","10":"tag-domestic-demand","11":"tag-eu","12":"tag-europe","13":"tag-german-manufacturers","14":"tag-germany","15":"tag-hamburg-commercial-bank","16":"tag-purchasing-managers-index"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114777029516518981","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/228818","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=228818"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/228818\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/228819"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=228818"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=228818"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=228818"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}