Germany manufacturing PMI hits 2-month high in November

By Tuba Sahin

ANKARA (AA) - Germany's manufacturing purchasing managers' index (PMI) rose to a two-month high of 46.7 in November, according to a flash reading from US-based financial services company S&P Global released on Wednesday.

November's figure rose from 45.1 in October, but remained below the neutral 50.0 threshold that separates growth from contraction for a fifth straight month.

Goods producers reported an outright improvement in lead times on inputs for the first time since July 2020, S&P Global said.

“Positively, data showed a reduction in the downward pressure on factory production, as manufacturers reported an improvement in material availability and an overall shortening of supplier delivery times for the first time in almost two-and-a-half years," said Phil Smith, economics associate director at S&P Global Market Intelligence.

High inflation and uncertainty about the outlook continued to weigh on demand for goods in November with manufacturers reporting a steeper decline in new orders.

Flash Germany services PMI activity index fell to 46.4 in October, down from 46.5 a month ago.

"... underlying demand continues to weaken rapidly, linked to sharp price increases and hesitancy among customers, with the downturn in service sector new business even gathering pace to the quickest since May 2020," Smith said.