Latest data released by Markit/BME - 4 May 2020
The preliminary release can be found here. Not much change to the initial estimate as German factory activity slumped heavily amid lockdown measures to contain the virus outbreak, resulting in record declines in new orders and output activity. Markit notes that:
"The fall in manufacturing production in March now pales in comparison to the unprecedented drop seen in April following a full month of virus containment measures at home and abroad. Output nosedived as large numbers of manufacturers either temporarily closed factories or cut working hours amid a collapse in export demand across Europe and the US, and mounting supply chain challenges.
"Even as more manufacturers start to come back on stream, there are still some huge question marks, like what kind of demand conditions are they returning to, and for how long will supply chains be impacted. The data show that manufacturers expect disruption to supply and demand to continue deep into 2020 at the very least, making the chances of a V-shaped recovery unlikely.
"Given such a challenging outlook, job cuts have continued to gather pace despite the widespread uptake of the short-time working scheme, thus raising the chances of a more protracted recovery."
