Germany's manufacturing activity at 31-month high in March

By Mucahithan Avcioglu

ISTANBUL (AA) - The HCOB Flash Germany Manufacturing Purchasing Managers’ Index (PMI) rose to 48.3 in March, marking the highest figure in 31 months, according to a report by the US-based financial services company S&P Global on Monday.

Despite increasing from 46.5 in the prior month, manufacturing activity continued contracting in March, as a reading above the 50.0 no-change threshold level indicates growth, while anything below that signifies a contraction.

The figure exceeded the market forecasts of 47.1 in March.

"The upturn in manufacturing was driven in large part by stronger demand in the sector, with goods producers reporting a first—albeit modest—rise in new orders since March 2022," it said.

Employment in Germany, meanwhile, continued to decline, marking the tenth consecutive monthly decline in March.

The rate at which workforces fell eased since February, however, reflecting a slowdown in the pace of manufacturing job shedding to the weakest in nine months, read the report.

On the price front, input costs and prices charged saw the slowest increases for five months.

Cyrus de la Rubia, chief economist at the Hamburg Commercial Bank, said: "Germany’s massive infrastructure and defense package, recently greenlit by both parliamentary houses, could give manufacturing a moderate boost in the near future."

“Economic growth in the first quarter looks promising, with the composite PMI staying above the expansionary threshold every month," he added.