BERLIN (Reuters) – Germany’s contraction in private sector activity deepened in February as output and new orders fell at a faster pace, according to the HCOB/S&P Global CEO survey. purchase published Friday.
The final HCOB PMI for the sector fell to 42.5 for last month compared to an initial “flash” estimate of 42.3. In January, it stood at 45.5.
“The widespread nature of the slowdown leaves little hope of a recovery in the near future,” said Cyrus de la Rubia, economist at Hamburg Commercial Bank, who also notes a clear slowdown in new orders, production and job.
The manufacturing sector represents around a fifth of the gross domestic product (GDP) of Germany, Europe’s largest economy.
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Cyrus de la Rubia stressed that the deterioration of Germany’s situation was unique in the euro zone, in particular compared to France or Italy, whose economy is significantly less affected, while it is even in growth Spain.
“However, it is better to have trading partners whose industry demonstrates some robustness rather than being dragged further into the abyss,” he said.
Delivery times improved in February, with disruptions in the Red Sea linked to geopolitical tensions having little overall effect on German companies, Cyrus la Rubia also noted.
New orders, down for 23 consecutive months, were the main drag on the manufacturing sector’s overall performance, with companies surveyed citing customer hesitation, a trend toward destocking and restrictive financial conditions.
(Writing by Miranda Murray; French version Claude Chendjou, edited by Kate Entringer)
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