The activity in Germany's manufacturing sector accelerated in March, reaching a 31-month high, with the Purchasing Managers' Index (PMI) coming in at 48.3, S&P Global and Hamburg Commercial Bank (HCOB) revealed in its report on Tuesday.
The Manufacturing PMI Output Index surged to 52.1, its highest in three years, driven by a rebound in new orders and stronger domestic sales. Growth was led by intermediate goods producers, while output remained flat in the investment goods segment and dipped slightly in consumer goods. Despite this uptick, employment, input buying, and inventories continued to fall, although the pace of decline eased.
"Production in the manufacturing sector finally increased again, and more than just a little," Chief Economist at HCOB Dr. Cyrus de la Rubia said, noting that there are hints that United States importers have brought forward imports from around the world to beat the impending tariffs.
