German S&P Mfg PMI Final || 47.3 (Forecast 47, Previous 47.0)

Demand conditions remain challenging, but confidence grows as cost pressures subside

Release

  • PMI edges slightly higher to 47.3 in January
  • Input cost inflation sinks to 27-month low
  • Expectations turn positive for first time in almost a year

Reuters

"German manufacturers are now cautiously optimistic towards growth prospects over the coming year, with more firms expecting a rise in output than a decline for the first time since before Russia's invasion of Ukraine,"

The sub-index for future output improved to 53.5 in January, up from 48.8 the previous month and back in positive territory for the first time since February 2022 when the war began.

"Expectations nevertheless remain historically subdued, amid a backdrop of still-high inflation and economic uncertainty,"