German Manufacturing PMI Rises in June, but Still in Contraction

German manufacturing PMI remained in contraction for the sixth straight month, even though it climbed to a four-month high of 45.0

Arslan Butt•Monday, July 1, 2019•1 min read

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.

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Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.