FX.co ★ Germany Manufacturing PMI Above Forecasts

The HCOB Germany Manufacturing PMI increased to 48.3 in March 2025, up from February's figure of 46.5, surpassing the predicted 47, according to preliminary estimates. This reading suggests a less severe contraction in the manufacturing sector, as manufacturers noted a slight, yet noteworthy, rise in new orders for the first time since March 2022. Some companies credited this improvement to a stronger domestic demand and stock replenishment by clients. Conversely, new export orders experienced a minor decline, continuing the contraction at a similar pace to February. Additionally, the report highlighted a deceleration in manufacturing job cuts, with the rate of layoffs reaching its lowest point in nine months. Regarding pricing, reductions in manufacturing purchase costs and factory gate charges lessened and remained relatively minor. Looking forward, the growth prospects among manufacturers remained optimistic.