Berlin-Germany’s manufacturing activity in June has been hampered by a sharp drop in new orders, bleak the outlook for Europe’s largest economy, a Friday survey showed.
S & P Global’s Manufacturing Final Purchasing Managers Index (PMI), which accounts for about one-fifth of the German economy, moved from May’s final 54.8 to 52.0 in June, in line with analysts’ expectations and expectations. It has dropped.
The new orders index was 43.3, reaching the lowest level since May 2020 from 47.0 in May, further below the 50 mark that separates growth and contraction.
“Potential demand for German products is rapidly adjusting,” said Phil Smith, Economics Associate Director of S & P Global Market Intelligence, adding that the company reported “multiple headwinds on export sales.” ..
“With the current decline in backlog, companies have downgraded their expectations for production over the next 12 months to the darkest over two years,” he said.
The survey showed some easing in terms of inflation, with both input costs and output prices slowing for the second straight month.
“But it’s difficult to unravel the pressure relief coming from the supply side due to the effects of weak demand,” Smith added.