Markit's Germany Manufacturing Purchasing Managers Index (PMI) was at 53.6 points in August this year, down from July’s 53.8 points.
August data highlighted a further sharp rise in production volumes at German manufacturers, with the pace of expansion down only slightly from July’s 27-month high. Increased demand was the main driver behind the rise in output, according to panel evidence. New orders also continued to rise, but the rate of increase was the weakest in three months. Sector data revealed that demand for consumer goods was stronger than that for intermediate and investment goods. Part of the rise in overall new business was attributed to higher new export orders which increased at the second-fastest pace for two-and-a-half years.
“Although the PMI edged down slightly since July, today’s survey results highlight that Germany’s goods-producing sector remains generally in good shape. The survey measures for production and new business were among the highest seen over the past two years and foreign demand rose sharply. Moreover, with the orders to inventory ratio rising to its highest level since early 2014, there is good reason to believe that production growth will be sustained in coming months.” stated Oliver Kolodseike, economist at Markit.