Germany’s mfg PMI slows again in Dec

4 January, 2019 12:00 AM printer

BERLIN: The Purchasing Managers’ Index (PMI) for manufacturing slows again in the last month of 2018 in Germany, a survey of IHS Markit showed on Wednesday.

Germany’s PMI index slips to 33-month low of 51.5 from 51.8 in November 2018, which represents the 11th decrease of the manufacturing index, according to the survey of IHS Markit, reports Xinhua.

The survey noted that the recent downturn in new orders deepened amid a steep and accelerated decline in exports, though output growth was sustained in Germany.

Business sentiment in Germany was curbed by uncertainty relating to Brexit, trade frictions and the slowdown in the automotive industry.

“A year that started with rapid growth in the manufacturing sector ended on a disappointing note, with latest PMI data showing the sector edging closer to stagnation in December,” said Phil Smith, principal economist at IHS Markit.

The PMI index of 50.0 separates growth from contraction.

“With things having got a little too hot at the end of 2017 a correction was inevitable, but the extent of the slowdown has been somewhat of a surprise. The darkening global economic picture has had ramifications for Germany’s outwardly-focused manufacturing sector over the course of 2018, while a sequence of headwinds in the car industry in the latter stages of the year has been a further restricting factor,” he added.