Germany PMI manufacturing was finalized at 55.9 in June, unrevised. Markit noted that new orders exhibited slowest rise in over two years. Optimism towards future output also dipped to lowest for more than three years. But there was pick-up in rate of job creation.
Commenting on the final IHS Markit/BME Germany Manufacturing PMI® survey data, Phil Smith, Principal Economist at IHS Markit said:
“The rate of growth of Germany’s manufacturing sector has consistently slowed throughout the first half of 2018, with June’s final headline PMI reading the lowest seen for one-and-a-half years.
“The question is whether there is worse still to come. Order book growth has consistently been below that of output in recent months, and in June the gap widened as the former slowed to the weakest seen for over two years, suggesting some underlying downward pressure on output levels. Firms have indeed become less optimistic in their expectations towards output, with tariffs seen as an added headwind to growth in the months ahead.
“The sector’s overall pace of growth may have shifted down another gear, but that hasn’t stopped manufacturers from creating more and more jobs, with a pick-up in the rate of employment growth the one bright spot from June’s survey. A strengthening domestic market will go some way towards offsetting the loss of exports.”
