German Manufacturing Activity Accelerates in February

In a recent report released on Monday by S&P Global and Hamburg Commercial Bank (HCOB), it was revealed that Germany's manufacturing sector experienced a notable acceleration in activity during February. The Purchasing Managers' Index (PMI) reached 46.5, marking the highest level in 25 months.

The Manufacturing PMI Output Index saw an increase to 48.9 from January's 46.3, achieving a nine-month high. This improvement is primarily due to a slowdown in new orders and a decline in exports. Despite these positive signs, the overall business conditions remain in a contraction territory.

Looking forward, goods producers in Germany, the eurozone's largest economy, anticipate an advancement in output levels over the next year. However, their optimism has slightly waned compared to January.

Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented, "The recession in German industry may come to an end in the coming months. The slowing decline in incoming orders since April 2022 and the significant weakening of the production recession within two months offer hope."