FLGR - Germany manufacturing PMI remains subdued at 22-month low in March

2023-04-03 04:26:56 ET

• The S&P Global/BME Germany Manufacturing PMI was revised slightly higher to 44.7 in March of 2023 from a preliminary of 44.4, but continued to point to a ninth straight month of falling factory activity and the sharpest contraction since May of 2020.

• Demand remained under pressure as customers refrained from placing new orders due to low confidence, rising borrowing costs and a desire to run down inventories.

• Also, the extent to which supplier delivery times shortened was the most marked in the series history.

• Accordingly, the degree of optimism towards the outlook remained low.

• On the other hand, output edged slightly higher for the second month running, aided by increased availability of components and materials.

• At the same time, the improvement in supplier performance was by far the greatest seen in the series history.

• The decline in manufacturing input costs also gathered pace, amid reduced raw material and transport costs, alongside a softening of energy prices.

• "Confidence among manufacturers towards the year ahead generally remained subdued in March, amid continued concerns towards future demand. However, underlying data showed that investment goods producers were more optimistic than most, having seen some promising signs on the order book front and an upswing in output," S&P Global Market Intelligence Economics Associate Director Phil Smith commented.

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