German Manufacturing PMI Slips in September, Orders Weigh on Recovery

Germany’s manufacturing sector lost momentum in September, as new orders declined despite stronger production growth, according to the latest business survey.

The HCOB final Manufacturing Purchasing Managers’ Index (PMI), compiled by S&P Global, edged down to 49.5 from August’s 38-month high of 49.8. The reading kept the index just below the key 50-point threshold that separates expansion from contraction.

Survey data showed that new orders fell again, underscoring ongoing demand weakness at home and abroad. Still, production growth rose to its strongest pace in more than three and a half years, suggesting manufacturers are leaning on existing backlogs to sustain activity.

The figures highlight the fragile nature of Germany’s industrial rebound, with Europe’s largest economy still struggling to achieve consistent growth in the face of trade headwinds and elevated input costs.