Germany manufacturing activity remains in contraction territory in April as indicated by the purchasing manager’s index (PMI) compiled by Market/BME.
The index showed a reading of 48.1, down from 49.0 in March, the latest reading indicated a moderate worsening of overall business conditions, and the rate of deterioration was the most marked since December 2012.
A number below 50 indicates contraction, above 50 is expansion.
Consumer goods producers recorded the fastest rate of contraction.
Germany is Europe’s largest economy and the world’s second-biggest exporter after China, so the numbers are cause for concern.
Meanwhile, other large euro zone economies like France, Italy and Spain (the euro zone’s second-, third- and fourth-largest economies) also experiences slowdown in manufacturing activity.
The overall euro zone PMI for manufacturing dropped to a four-month low of 46.7 in April from the prior month’s 46.8, but coming in ahead of an earlier flash reading of 46.5.
“There is nothing here to suggest that manufacturing will turn the corner and stabilise any time soon, putting greater onus on policymakers to act quickly to reinvigorate growth,” said Markit’s chief economist, Chris Williamson.
“The fact that the Eurozone Manufacturing PMI came in slightly higher than its flash reading offers little consolation to the fact that the index fell further in April,” Williamson added.
Germany manufacturing activity remains in contraction territory in April as indicated by the purchasing manager’s index (PMI) compiled by Market/BME.
The index showed a reading of 48.1, down from 49.0 in March, the latest reading indicated a moderate worsening of overall business conditions, and the rate of deterioration was the most marked since December 2012.
A number below 50 indicates contraction, above 50 is expansion.
Consumer goods producers recorded the fastest rate of contraction.
Germany is Europe’s largest economy and the world’s second-biggest exporter after China, so the numbers are cause for concern.
Meanwhile, other large euro zone economies like France, Italy and Spain (the euro zone’s second-, third- and fourth-largest economies) also experiences slowdown in manufacturing activity.
The overall euro zone PMI for manufacturing dropped to a four-month low of 46.7 in April from the prior month’s 46.8, but coming in ahead of an earlier flash reading of 46.5.
“There is nothing here to suggest that manufacturing will turn the corner and stabilise any time soon, putting greater onus on policymakers to act quickly to reinvigorate growth,” said Markit’s chief economist, Chris Williamson.
“The fact that the Eurozone Manufacturing PMI came in slightly higher than its flash reading offers little consolation to the fact that the index fell further in April,” Williamson added.
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