BERLIN – The contraction in Germany’s manufacturing sector accelerated in March, at its fastest pace in nearly three years, the final results of S&P Global’s surveys of purchasing managers showed on Monday.
The index fell to 44.7 in March, the lowest since May 2020, from 46.3 in February. The Reuters consensus gave it at 44.4, as in the first estimate.
The decline is mainly related to the delivery times sub-index, which is reversed in the calculation of the PMI and therefore has a negative influence when it rises.
“The improvement in supplier performance is by far the largest ever seen in statistical history and represents an end to the unprecedented disruption caused by the pandemic,” S&P Global said in a statement.
“Lower costs were another bright spot, with less pressure on pricing…although this is largely a symptom of softening demand,” added Phil Smith, associate director at S&P Global. Market intelligence.
According to the survey, German industrialists’ expectations for future production, while positive, are subdued by historical standards in March. Geopolitical uncertainty, high inflation and tighter financial conditions are raising demand concerns.
(Maria Martinez, Laetitia Volga, edited by Kate Entringer)
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