FX.co ★ Germany's Manufacturing PMI Continues Decline in December

Germany's manufacturing sector saw another setback in December 2024, as the latest figures reveal a drop in the HCOB Manufacturing Purchasing Managers' Index (PMI). The indicator, which stood at 43.0 at the start of December, has inched down to 42.5 by the end of the month, according to data updated on January 2, 2025.

A PMI below the neutral level of 50.0 points to a contraction in the manufacturing sector, indicating that the industry remains under pressure amidst ongoing economic challenges. This continued decline reflects persistent demand weakness and potential supply chain strains affecting Germany's manufacturing output.

The latest data compounds the struggles facing the Eurozone's largest economy as it seeks to bolster industrial resilience. With the new year, all eyes will be on Germany's economic policies and potential measures to stimulate this crucial sector in the months ahead.