Germany manufacturing hits 37-month low in July – survey

24 July 2012 17:04  [Source: ICIS news]

LONDON (ICIS)--Business activity in Germany’s manufacturing sector saw a sharp drop in July, falling to a 37-month low, a market research group said on Tuesday.

Markit, which cited preliminary findings for its monthly purchasing managers' index (PMI) for Europe’s largest economy, said that July’s reduction in manufacturing production was the steepest for just over three years, with new orders received in the sector falling at the fastest pace since April 2009.

Markit’s PMI for Germany manufacturing sector fell to 43.3 points in July, down from 45.0 points in June. Readings of below 50.0 indicate a contraction.

Markit’s manufacturing output index for Germany was also at a 37-month low, falling to 42.8 point, from 44.8 in June.

“July’s survey highlights that German business conditions are far less healthy than those seen during the first half of 2012, especially across the manufacturing sector where new export orders fell at the fastest pace for over three years,” said Markit senior economist Tim Moore.

“Moreover, an accelerated decline in new work means that the stage could well be set for a steeper drop in GDP than the 0.2% fall recorded at the end of 2011,” Moore said.

Markit’s PMI is based on survey responses from about 1,000 firms in Germany’s manufacturing and services sectors.

Paul Hodges studies key influences shaping the chemical industry in his Chemicals and the Economy Blog


By: Stefan Baumgarten
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