Finance
German manufacturing shows signs of resilience in August, PMI shows
Published by Global Banking & Finance Review®
Posted on September 1, 2025
2 min readLast updated: January 22, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on September 1, 2025
2 min readLast updated: January 22, 2026
German manufacturing showed resilience in August with a PMI rise to 49.8, driven by new orders and production, despite employment declines.
BERLIN (Reuters) -Germany's manufacturing sector showed signs of resilience in August, with production and new orders growing at a stronger pace, although employment continued to decline, a survey reported on Monday.
The HCOB final Purchasing Managers' Index (PMI) for German manufacturing, compiled by S&P Global, rose to 49.8 in August from 49.1 in July, slightly lower than an initial reading of 49.9 and the highest reading since the index fell below the 50.0 threshold that separates growth from contraction in mid-2022.
The uptick was driven mainly by increases in new orders and output, with new orders growing for the third consecutive month.
However, export sales saw a marginal decline for the first time in five months.
Despite the positive momentum in production, German manufacturers remained in job-cutting mode, with employment falling at a quicker rate than in July.
Labour office figures last week showed the number of unemployed people in Germany past the 3 million mark for the first time in a decade, as the labour market of Europe's biggest economy is squeezed by two years of economic contraction.
"The ability to expand production despite mounting challenges is a testament to (the sector's) resilience," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
Challenges include the looming disruption of trade relations with one of the most important non-EU markets, the United States, intensifying competition from China and pressure on competitiveness due to a stronger euro, added de la Rubia.
(Reporting by Miranda Murray; Editing by Toby Chopra)
The HCOB final Purchasing Managers' Index (PMI) for German manufacturing rose to 49.8 in August from 49.1 in July.
The uptick in German manufacturing was driven mainly by increases in new orders and output, with new orders growing for the third consecutive month.
Despite the positive momentum in production, employment in the German manufacturing sector continued to decline, falling at a quicker rate than in July.
Challenges include looming disruptions in trade relations with the United States, intensifying competition from China, and pressures on competitiveness due to rising costs.
The ability to expand production despite mounting challenges is seen as a testament to the sector's resilience, according to Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
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