Editorial & Advertiser disclosure

Global Banking and Finance Review is an online platform offering news, analysis, and opinion on the latest trends, developments, and innovations in the banking and finance industry worldwide. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Finance

Posted By Global Banking and Finance Review

Posted on February 3, 2025

Downturn in German manufacturing eases in January, PMI shows

BERLIN (Reuters) - The decline in Germany's manufacturing sector eased in January, helped by the slowest fall in both output and new orders in months, a survey showed on Monday.

The HCOB Germany Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 45.0 in January from 42.5 in December, marking the highest reading since May last year.

The final reading is nearly a point higher than the preliminary figure of 44.1, but remains firmly below the 50-point mark that separates growth from contraction.

Germany is holding elections on Feb. 23 after the coalition government collapsed late last year, in part due to a dispute over how best to revive Europe's largest economy.

Production contracted at the slowest rate in eight months, while new orders saw the least marked fall since last May, the survey showed. Export sales also declined, reflecting challenges in foreign markets, but at a slower pace.

German manufacturers continued to cut jobs, extending the current period of workforce reduction to 19 months. The pace of job losses, however, was the slowest since August.

Business expectations improved significantly, reaching their highest level since February 2022.

"In a genuinely positive sign, companies are looking to the future with much more confidence," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank AG.

"Some companies justify this optimism with the prospect of lower interest rates and hopes that the economy will pick up after the parliamentary elections with a new government."

However, de la Rubia said January's survey was not enough to signal that a sustainable recovery is underway.

"Fear of U.S. tariffs, snap elections and rising insolvencies are not exactly the recipe to end the recession in the manufacturing sector," he added.

(Writing by Miranda Murray; Editing by Christina Fincher)

Recommended for you

  • Brookfield to invest 20 billion euros in AI projects in France, Tribune reports

  • Ukraine's military says it shot down 70 out of 151 drones launched by Russia overnight

  • China to roll back clean power subsidies after boom