The German manufacturing sector ends 2024 with an accelerating decline
The Standard & Poor’s Global Hamburg Commercial Bank Composite Purchasing Managers’ Index fell to 42.5 points in December from 43.0 in both October and November, according to preliminary estimates.
Readings above the 50 level indicate growth, while readings below the same level indicate contraction.
“The situation in the manufacturing sector remains very bleak,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.
He added, “Production is witnessing a sharp decline, and new orders continue to decline, which makes it clear that the manufacturing sector will not emerge from the recession any time soon.”
Employment in the sector fell for the eighteenth straight month as companies adjusted to weak demand, however the rate of job losses slowed to the lowest level since August.
De la Rubia said the downward trend in business conditions may end in the second half of 2025, when a new government is supposed to take power in Germany after the February elections, and the cautious approach to investment and consumption may change. (Sky News)
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