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Germany PMI manufacturing finalized at 57.4 in Nov, Another month of constrained manufacturing production

Germany PMI Manufacturing was finalized at 57.4 in November, down from October’s 57.8. Markit noted that input shortages held back output and, to a lesser extent, new orders. Rising energy costs helped drive new record increase in output prices. Business expectations improved for the first time in five months.

Phil Smith, Associate Economics Director at IHS Markit, said:

“November data signalled another month of constrained manufacturing production levels across Germany, as firms continued to have difficulty sourcing critical inputs and keeping up with demand. The survey’s output index did at least steady in November after being in free fall in recent months, possibly helped by fewer supply delays and firms’ recent efforts to accumulate greater safety stocks.

“However, the supply situation will likely need to improve a lot more before we see any real take-off in manufacturing production.

“While manufacturing output remains subdued, the opposite is true of factory gate prices which continue to sky-rocket, with November seeing the rate of charge inflation hitting to a new survey-high.

“Manufacturing expectations in November withstood the continued surge in prices, and even the fourth wave of COVID-19 infections, to move to a three-month high. The emergence of the Omicron variant poses more uncertainties, however, including a risk of fresh supply-chain disruption.”

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