Germany manufacturing worsens further in November - survey

01 December 2011 17:47  [Source: ICIS news]

LONDON (ICIS)--Germany’s manufacturing sector deteriorated further in November, with both output and new orders falling at faster rates than in the previous month, a market research firm said on Thursday.

Research firm Markit said its purchasing managers index for Germany fell to 47.9 points in November, from 49.1 points in October – signalling the sharpest deterioration of overall operating conditions since July 2009.

However, despite the declines in both output and new order levels, the rate of the fall was still much softer than during the 2008/2009 global economic crisis, the group said.

The November survey pointed to evidence that manufacturing firms delay spending decisions and try to reduce stocks in the wake of an uncertain economic outlook and the financial market unrest in the eurozone, the group said.

“November data highlighted a continued reversal of fortunes in the German manufacturing sector, with weakening export conditions resulting in the fastest drop in output and new orders since mid-2009,” said Markit senior economist Tim Moore.

“Lower backlogs of work and rising finished goods inventories were additional symptoms of a waning manufacturing recovery in November,” Moore said.

"These trends were partially attributed by respondents to the postponement of existing orders from clients in the wake of the deteriorating global economic outlook,” he added.

Markit’s survey is based on responses from a panel of more then 500 companies in Germany's manufacturing sector.

Read Paul Hodges’ Chemicals and the Economy Blog

By: Stefan Baumgarten
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