FX.co ★ Germany’s Manufacturing Rebounds as HCOB PMI Climbs Back Into Expansion in February

Germany’s manufacturing sector moved back into expansion territory in February 2026, as the HCOB Germany Manufacturing Purchasing Managers’ Index (PMI) rose to 50.7. This marks a notable improvement from January 2026, when the indicator stood at 49.1, signaling contraction in the sector.

The latest reading, updated on 20 February 2026, suggests that conditions in German manufacturing have strengthened enough to cross the crucial 50.0 threshold that separates expansion from contraction. The shift from 49.1 to 50.7 over one month points to improving momentum in output and new orders, offering a more optimistic signal for Europe’s largest industrial economy.