Contraction Of German Manufacturing Sector Continues Into 3Rd Quarter: Survey
Date
10/3/2023 2:08:00 PM
(MENAFN- Famagusta Gazette) The manufacturing sector in Germany continued to contract in the third quarter of this year, according to a survey published on Monday. Meanwhile, the sector's output experienced the sharpest decline since May 2020, said the latest HCOB PMI survey conducted by the U.S. credit rating agency S&P Global.
Pessimism among goods producers deepened in the third quarter, leading to job cuts, the survey said, while weaker demand resulted in lower input and output charges.
In spite of the decline in output, overall business conditions in Germany improved slightly in September. The HCOB Germany Manufacturing PMI, a composite indicator of new orders, output, employment, supplier delivery times and stocks of purchases, went up from 39.1 in August to 39.6 in September. However, although this is the highest level in three months, it is still well below 50, the threshold separating contraction from expansion.
“There are tentative signs that the bottom is in sight,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
The pace of the decline in new orders is slowing down, he said, providing a glimmer of hope that“the sector is starting to turn the corner.” ■
Author
Famagusta Gazette
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