Germany's manufacturing PMI revised slightly higher in March

By Tuba Ongun

ANKARA (AA) - Germany's manufacturing purchasing managers’ index (PMI) was revised slightly upwards to 44.7 in March, the lowest reading since May 2020, according to the final data released by S&P Global on Monday.

The figure was up from preliminary reading of 44.4 for the month, but down from 46.3 in February.

Demand remained subdued as customers refrained from placing new orders due to weak confidence, rising borrowing costs, and a desire to run down inventories.

The drop rate in overall new orders was slower than the average seen over the second half of last year, thanks to easing in the decline in export sales to the slowest for nine months.

German manufacturing output edged slightly higher for the second consecutive month in March, due to increased availability of components and material.

Supplier performance improved at the greatest pace ever, indicating an unwinding of the unprecedented disruption brought about by the coronavirus pandemic.

Factory gate price inflation rate slowed sharply to its lowest in over two years in March.

Phil Smith, a director at the S&P Global, said: "The headline PMI pointed to a deepening downturn in the manufacturing sector in March, but, having been heavily influence by the supplier delivery times sub-index, it masked a second successive, albeit slight, uptick in production levels during the month."

"Falling input costs were another plus-point, with lower pipeline price pressures a welcome development for inflation, although this is in large part a symptom of cooling demand," he added.