Headline index remains deep in recessionary territory (Il Sole 24 Ore Radiocor) - London , 02 May - In April, Germany's purchasing managers' index for the manufacturing sector rose to a two-month high of 42.5 from 41.9 in March, according to data released by S&P Global and Hamburg Commercial Bank.

The manufacturing PMI output increased to a three-month high of 45.4 from 43.2 in March.

A reading above 50 signals expanding sector activity and a reading below 50 a contraction.

'Anyone looking for encouraging economic signals from the manufacturing sector will be somewhat frustrated when analysing the HCOB PMI figures for Germany," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

"The headline index remains deep in recessionary territory in April, new orders are falling even faster than before and instead of restocking inventories of purchased goods, they continue to be depleted. This contrasts with the moderate yet discernible recovery observed in the manufacturing sectors of many other countries worldwide, suggesting that structural factors are exerting a significant dampening effect in Germany. One such factor is the diminishing role of China as a source of demand for German exporters, owing to lower growth in the Asian country. Moreover, China is increasingly emerging as a competitor for German mechanical engineering companies and car manufacturers, within China, in Germany and globally. For instance, while exports of cars from Germany to China fell by 2% over three years up to 2023, imports of cars from China to Germany surged by 250% during the same period.".

AAA-Hob

(RADIOCOR) 02-05-24 10:11:32 (0235) 5 NNNN