Germany's business activity falls to 23-month low

By Ovunc Kutlu

ANKARA (AA) – Business activity in Germany fell to its lowest level in 23 months, according to a report by the US-based financial services company S&P Global released on Thursday.

Germany's manufacturing purchasing managers' index (PMI) declined to 52.0 in June, down from 54.8 in May, the latest flash PMI data showed.

"Falling exports acted as a drag, while there were also signs of domestic demand coming under pressure from heightened economic uncertainty and sustained strong inflation," the report said.

"Firms' expectations towards future activity slumped to their lowest since the first wave of the COVID-19 pandemic over two years ago, with manufacturers growing increasingly pessimistic about the outlook," it added.

S&P Global also said German businesses in June reported their lowest confidence towards future activity for over two years.