German Manufacturing Declines Again, New Export Orders Fall at Fastest Pace Since April 2009

The Markit Germany Manufacturing PMI� � Final Data shows the German export downturn gathers momentum.

Key points:

Manufacturing PMI rises from July�s 37-month low
Output, new orders and employment all drop at slower rates...
...but export downturn continues to gather pace



August data pointed to a fall in production levels for the fifth month running, and the rate of expansion remained relatively steep in the latest survey period.

August data highlighted a sharp fall in new order levels, although the rate of contraction eased slightly from July�s low. The slower pace of decline largely reflected a less marked drop in domestic demand, as new export work fell at the steepest rate since April 2009.

Survey respondents commented on a general slowdown in global demand and particular weakness in new business inflows from Southern Europe. Investment and intermediate goods producers recorded the steepest reductions in new export orders. Meanwhile, August data signalled a rapid fall in outstanding business at manufacturing firms, which extended the current period of contraction to 12 months.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com
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