Germany December flash manufacturing PMI 47.4 vs 46.3 expected

• Prior 46.2
• Services PMI 49.0 vs 46.3 expected
• Prior 46.1
• Composite PMI 48.9 vs 46.5 expected
• Prior 46.3

That's a modest improvement to November, highlighting that the downturn in the German economy is seen easing somewhat to round off the year. That might help to lift some of the recent gloom but it doesn't take away from the fact that recession risks are still present and very much in play at the moment. S&P Global notes that:

“The latest flash PMI survey paints a somewhat less gloomy picture of Germany’s economy as we head towards the end of the year. Although still in contraction territory, the headline index pointed to a shallower downturn in overall business activity in December, as the declines in both manufacturing and services eased.

“Price pressures remain historically elevated, reflecting in large part the continued pass-through of high energy costs, but even here there are some positive signs as rates of both input cost and output charge inflation fell to multi-month lows due to weaker demand and easing supply chain frictions.

“Supplier delivery times showed another notable improvement in December, giving some support to production levels during the month thanks to better material availability. However, we continue to see a trend where new orders are falling much quicker than output, which, if it continues, bodes ill for future activity as firms eat up their backlogs of work.

“A backdrop of falling demand, high inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term and tightening financial conditions explains why businesses, particularly manufacturers, remain downbeat about the outlook. That said, nerves have settled somewhat compared to the situation three months ago, when concerns about the energy crisis were at their peak, in a further sign that the expected recession could be shallower than first feared.”