FX.co ★ Germany Manufacturing Sector Growth Beats Forecasts

Germany’s Manufacturing PMI rose to 54.2 in October 2026 from 53.9 in September, beating market expectations of 53.5, according to preliminary estimates. This two-month high indicated a further improvement in overall manufacturing business conditions.

That said, growth in manufacturing output lost some momentum, with the output index slipping to 55.1 from 56.0, its lowest reading in three months. New orders continued to increase but at a slower rate, supported by ongoing growth in export sales, while backlogs of work posted another strong rise.

On the labour front, employment moved closer to stabilisation, as job losses slowed to their weakest pace in more than three years.

Regarding prices, input-cost inflation accelerated for a second consecutive month, reaching its highest level since May. This was largely driven by higher oil prices and rising costs for raw materials and components.

Looking ahead, manufacturers’ business confidence softened to its lowest level since July, reflecting mounting concerns about increasing input prices.