FX.co ★ Germany’s Manufacturing Slump Eases as HCOB PMI Climbs Toward Growth in January

Germany’s manufacturing sector showed signs of stabilisation in January, as the HCOB Germany Manufacturing Purchasing Managers’ Index (PMI) rose to 49.1. The latest reading moves closer to the 50-point threshold that separates contraction from expansion, suggesting that the downturn in German industry may be losing momentum.

The January figure compares with a previous level of 47.0, indicating a notable improvement within the same month-long period. While the index remains below 50, the upward move points to a softer contraction and hints that conditions in the manufacturing sector could be starting to turn a corner.

The updated data, released on 2 February 2026, will be closely watched by markets and policymakers as they gauge whether Germany’s industrial base is on the path toward a more sustained recovery, or merely experiencing a temporary easing in weakness.