Germany's manufacturing activity at 6-month high in November

By Tuba Ongun

The HCOB Flash Germany Manufacturing Purchasing Managers’ Index (PMI) rose to 42.3 in November, marking the slowest pace of contraction in the sector in six months, according to a report by the US-based financial services company S&P Global on Thursday.

Despite increasing from 40.8 in the prior month, manufacturing activity continued contracting in November as a reading above the 50.0 no-change threshold level indicates growth, while anything below that signifies a contraction.

New work inflows fell for the seventh month in a row in November but at the weakest rate since June. The new export business likewise fell at a slower pace, read the report.

Employment in Germany meanwhile continued to decline, with the rate of job losses accelerating slightly but still only modest in November.

The rate at which manufacturing workforce numbers fell was the quickest in over three years, read the report.

On the price front, manufacturing purchasing costs in November saw the steepest decline since August.

Cyrus de la Rubia, chief economist at the Hamburg Commercial Bank, said: "In manufacturing, there is a silver lining as the decline in new orders is tapering off. This is supported by both domestic and external orders."

Rubia pointed out the noteworthy slowdown in the reduction of the stock of purchases, coupled with smaller cuts to new purchases.