by Maria Martinez
BERLIN (Reuters) – The slowdown in Germany’s manufacturing sector worsened in March, according to the definitive HCOB PMI indicator for the sector, compiled by S&P Global
The indicator stood at 41.9 in final reading, compared to 41.6 in preliminary reading and 42.5 in February.
A figure below 50 signals a contraction in activity.
“The German manufacturing sector has been in recession since the middle of last year, and the latest PMI indicators signal a further contraction in the first quarter of 2024,” according to Cyrus de la Rubia, economist at Hamburg Commercial Bank.
Weak demand contributed to further job cuts and a significant drop in inventories, while prices fell amid strong competition.
The decline in the indicator in March, however, masks the less significant weakening of new orders and production.
Manufacturers remain optimistic for the next 12 months, expecting a recovery in demand, particularly in the second half.
(Report by Maria Martinez, French version Corentin Chappron, edited by Blandine Hénault)
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