German manufacturing still in contraction in Nov.

Thursday, 01. December 2022 09:56

The manufacturing sector in Germany remained in the contraction territory in November, with the Purchasing Managers' Index (PMI) coming in at 46.2, slightly below market expectations, but still going up from October's almost two-and-a-half year record low of 45.1, S&P Global stated in its report issued on Thursday.

The report highlighted significant declines in demand, new orders, and level of output as the reason behind the lukewarm results. It also noted high prices of energy, inflation, and general economic uncertainty as key factors that led to expectations remaining pessimistic.

"Although the immediate threat of gas shortages may have subsided somewhat, contributing to an improvement in expectations from October's low point, energy security remains a major concern for German manufacturers, as does falling demand," S&P Global Market Intelligence Economics Associate Director Phil Smith commented on the results.

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