Germany's manufacturing activity hits 25-month low

By Tuba Sahin

ANKARA (AA) – Germany's manufacturing activity was at its weakest level in 25 months as its purchasing managers' index (PMI) hit 49.2 in July, the US-based financial services company S&P Global said on Friday.

Manufacturers registered a sharp fall in new orders in July, the biggest since May 2020, according to the S&P Global flash estimate.

Germany's composite PMI decreased to 48 in July, pointing to the first contraction of activity since December 2021 and the worst performance in 25 months.

Declines in both domestic and export demand were indicated by the latest data as a combination of an uncertain business environment, supply shortages and stretched client budgets weighing on the sector, it said.

Flash Germany services PMI activity index fell to a seven-month low at 49.2 in July, down from 52.4 in June.

The fall in services activity reflected a combination of staff shortages and a retrenchment of new business, according to the S&P Global.

Future expectations have dived into negative territory for the first time since May 2020, when the first wave of the COVID-19 pandemic was felt earnest.