German manufacturing industry slows down sharply in February. The PMI Hcob Purchasing Managers' Index fell, according to flash data, to 42.3 from 45.5 in January. Values which disappoint the expectations of economists: forecasts revolved around growth of 46.1. Services, on the other hand, exceeded expectations, going from 47.7 to 48.2 when they should theoretically have settled at 48. The composite index fell, going from 47 to 48.1, also below the growth expectations at 47.5. Tariq Kamal Chaudhry, economist at Hamburg Commercial Bank, explains: “The German economy remains under pressure. With the Hcob composite PMI falling to 46.1, this is not just a monthly decline but the eighth consecutive month of contraction. The manufacturing sector weighs on the economy more than the service sector can compensate. Looking at the composite PMI, it is clear that Germany is facing a shortage of new orders, both domestically and internationally. » As Bloomberg recalls, these figures come against a backdrop of growing concerns about Germany's economic performance, which is weighed down by the prolonged weakness of its oversized manufacturing sector. The government on Wednesday lowered its growth forecast for this year from 1.3% to 0.2%, after a contraction in 2023. Companies in the sector also became more pessimistic about the future, for the first time since November .
Cover photo: Shipping Monitoring
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