German manufacturing shows signs of recovery, but job cuts accelerate, PMI shows
The HCOB Germany Manufacturing PMI compiled by S&P Global rose to 46.5 last month from January's 45.0, marking the highest level since January 2023, although remaining below the 50.0 threshold indicating growth.
The survey revealed modest declines in output, new orders, and export sales, with the smallest drop in new orders since April 2022. However, employment fell sharply, with the rate of job shedding accelerating to the fastest in three months.
"Job cuts have accelerated sharply of late," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank AG. "However, with the stabilisation of production that is becoming apparent, it is possible that companies will gradually change tack."
The survey also noted a decline in both input costs and output prices, attributed to spare capacity across supply chains.
Despite a positive outlook for future output, business optimism weakened slightly from January's near three-year high, amid concerns over geopolitical tensions and tariffs.
(Reporting by Reuters; editing by Christina Fincher)
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