Germany December final manufacturing PMI 47.0 vs 47.7 prelim

Germany's December manufacturing PMI dropped to 47.0, lower than the preliminary 47.7 and significantly down from 48.2 in the previous month, marking a 10-month low. This decline is attributed to weakening demand, leading manufacturing activity into contraction for the first time in ten months. Export sales have slumped, resulting in cuts to employment and inventory levels. Moreover, price pressures are rising again, with producers reporting an increase in input prices for the first time in almost three years. HCOB notes that while there were earlier signs of recovery in 2025, the downturn deepened in December. The continuous decline in export orders for five consecutive months points toward a weak start for 2026. Overall, staff reductions persist, driven by lower investment and the need for cost-saving measures, and there are no immediate signs of a turnaround in the inventory situation.