Germany PMI Manufacturing was finalized at 62.6 in August, down from July’s 65.9. Markit said suvery’s output index fell to its lowest level since August 2020. New orders continued to rise sharply, albeit also at a slower pace. Cost pressures remained historically elevated.
Phil Smith, Associate Economics Director at IHS Markit, said:
“While we continue to see strong demand for German goods, with growth in new orders still among the highest on record, production levels are being constrained as manufacturers grapple with supply chain problems. According to August’s data, growth in output has now fallen behind that of new orders to an extent previously unseen in over 25 years of data collection.
“Supply-demand imbalances continue to push up costs at a historically elevated rate, and concerns that higher prices could discourage customers is one of the factors that has seen manufacturers’ expectations for future output fade to the lowest since last October.
“Still, many goods producers are hopeful that conditions will have improved come next summer, and a further steep rise in employment levels shows that efforts are still being made to expand capacity and prepare for higher output in the future.”
