FX.co ★ Germany Manufacturing PMI Revised Higher

The HCOB Germany Manufacturing PMI was adjusted upward to 49.5 in September 2025 from an initial estimate of 48.5, although it remains below the 49.8 recorded in August, suggesting near stagnation in the manufacturing sector. Notably, production growth reached its highest level in three-and-a-half years, primarily driven by the investment goods sector. This growth was often sustained by addressing a backlog of orders, which declined at its fastest pace in three months. However, the influx of new orders decreased for the first time in four months, affected by heightened uncertainty, increased international competition, and the impact of US tariffs. Additionally, employment levels continued to decline, the costs of purchases continued to decrease, and average producer prices dropped amid reports of strong competition for new work. Lastly, business outlook for the upcoming year plummeted to its lowest point in nine months, with companies experiencing a renewed drop in new order intakes.