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German manufacturing at highest level in nearly six years

Staff Writer | March 2, 2017
German manufacturing posted a strong performance in February with the best overall improvement in operating conditions since May 2011, according to the latest PMI survey data from IHS Markit and BME.
German manufacturing
Germany   Markit/BME Germany Manufacturing PMI
Growth rates for output, new orders, exports and purchasing all accelerated since January, and employment rose sharply.

The latest findings also revealed the strongest increase in input prices since May 2011, linked to metals and oil-based materials.

The headline Markit/BME Germany Manufacturing PMI is a composite single-figure indicator of manufacturing performance.

It is derived from indicators for new orders, output, employment, suppliers’ delivery times and stocks of purchases.

Any figure greater than 50.0 indicates overall improvement of the sector.

The PMI rose from 56.4 in January to 56.8 in February, the highest since May 2011.

The increase in the headline figure reflected the output, new orders and suppliers’ delivery times components, while employment and stocks of purchases also made positive overall contributions.

The current 27-month sequence of improving manufacturing conditions is the longest observed in over eight-and-a-half years.

Manufacturing new orders rose at the strongest rate in just over three years in February.

Firms reported improved demand from both domestic and export markets, with both Europe and Asia mentioned as sources of growth.

New export orders expanded at the fastest rate since January 2014.