German Manufacturing Sector Accelerates

In an encouraging sign for the German economy, the manufacturing sector's activity accelerated in February, reaching a 25-month high. The Purchasing Managers' Index (PMI) stood at 46.5, as reported by S&P Global and Hamburg Commercial Bank (HCOB) on Monday.

Output Index Rises

The Manufacturing PMI Output Index saw a notable increase to 48.9 from January's 46.3, marking a nine-month high. This improvement is largely due to a slowdown in new orders and a decline in exports, even though the overall business conditions remain in contraction territory.

Future Outlook

Looking forward, manufacturers 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.

Expert Insight

"The recession in German industry may be nearing its end in the coming months. The slowing decline in incoming orders and the significant weakening of the production recession within two months offer hope," stated Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank.