German manufacturing PMI remained in contraction for the sixth straight month, even though it climbed to a four-month high of 45.0 in June. The figure came lower than the flash reading which was at 45.4 over a decline in new orders and lower employment.

Germany is one of the biggest economies within the Eurozone, accounting for about 20% to Eurozone’s economy. Since October 2018, new orders have been falling lower, causing manufacturers to lay off its staff since March 2019.

Ongoing trade disputes between US and China and a slowdown in global economic growth have been weighing on the German economy in recent times, which is highly dependent on its manufacturing sector.

According to government data, the German economy is expected to grow by 0.5%, mainly driven by a growth in domestic demand. High rates of employment and wage growth as well as low interest rates can help boost domestic demand in Germany’s economy in 2019.