German Manufacturing Growth Strongest in Four Months
German manufacturing activity showed strength in July 2026. The S&P Global Manufacturing PMI rose to 52.2 from 50.3 in June.
This figure far exceeded market expectations of 50.5. An index above 50 indicates the manufacturing sector is returning to expansion.
Growth was primarily driven by production growth, which reached its fastest pace in nearly four and a half years. Increased orders, higher capacity utilization, and accelerated production activity also supported the sector's performance.
New orders continued to improve, while export demand recorded its strongest increase since February 2022. This indicates a recovery in demand for German manufactured products.
On the price side, raw material cost growth slowed to its lowest level in five months. Increases in producer selling prices also began to ease, reducing inflationary pressures in the manufacturing sector.
Business confidence improved in July, although it remained below historical averages. Strengthening orders and production provide opportunities for German manufacturing to maintain growth, as long as export demand remains strong. (asd)
Source: Newsmaker.id
