Markit's Germany Manufacturing Purchasing Managers Index (PMI) was at 56.9 in July, up from 55.9 in June. The increase stemmed from an increase in output and in the rate of expansion in new orders.
July data showed that the rate of job creation in the manufacturing sector remained steep and purchasing activity increased at a faster pace while the rate of input cost inflation softened slightly to a three-month low. Meanwhile, expectations about production improved and reached a three-month high due to the anticipations of further new order growth. However, some respondents raised concerns about uncertainties arising from the tariffs.
“The beginning of the second half of the year brought a faster rise in manufacturing growth among German manufacturers. Following a dip in overall performance in June, the upturn in output and new orders strengthened. That said, the increase in production continued to outpace that of new orders as firms expanded their efforts to clear backlogs,” stated Sian Jones, economist at IHS Markit.