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S&P
Global's final Purchasing Managers' Index (PMI) for
manufacturing, which accounts for about a fifth of Germany's
economy, fell to 46.3 in February, from 47.3 in January. It
marked its lowest level for three months and stayed below the 50
level that points to growth in activity. However, S&P Global saw
some encouraging signs.
"The easing of supply chain pressures is not only underscored by
a record improvement in delivery times, but also by a first drop
in purchase prices for nearly two-and-a-half years, as the
pendulum of pricing power swings back in the direction of
buyers," said Phil Smith, economics associate director at S&P
Global Market Intelligence.
While there were positives on the supply-side, demand remained
under pressure, with new orders continuing to fall, according to
the report.
The German manufacturing PMI has languished below the 50 mark
since July. A Reuters poll of analysts had forecast a February
reading of 46.5, in line with an earlier flash reading.
Manufacturers were slightly more optimistic about the outlook
compared to January, marking a fourth straight monthly
improvement in sentiment, according to the survey.
"Hopes for lower inflationary pressures helped brighten the
outlook among German goods producers in February, although
expectations are yet to return to the level prior to Russia's
invasion of Ukraine," Smith said.
(Reporting by Maria Martinez; Editing by Susan Fenton)
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