Markit's Germany Manufacturing Purchasing Managers Index (PMI) was at 52.3 points in January this year, down from December’s 53.2 points and slightly higher than the 2015 average of 52.1.
In January, Germany’s manufacturing sector grew further, although the pace of expansion was the slowest since last October. Latest survey results signaled a slowing in the rate of production growth at German manufacturers, largely as a result of stagnating output at intermediate goods producers. Meanwhile, consumer and investment goods manufacturers reported further solid growth.
“It is an unspectacular start to the year for German manufacturers. Although, the headline PMI signaled further growth in the sector, the pace of expansion was relatively sluggish. It is also a bit disappointing that the first reduction in selling prices for three months was not sufficient to generate a stronger increase in total new business. A source of weakness highlighted by the data was subdued demand from foreign markets,” stated Oliver Kolodseike, economist at Markit. Mr. Kolodseike also stated, “Low energy, oil and raw material prices, meanwhile, have continued to exert downward pressure on prices, with the latest fall in input costs one of the steepest since the financial crisis.”