German industry suffers in July the most marked contraction for over three years in a context of declining orders and production for companies. Indeed, the German manufacturing PMI stood at 43,0 points in the final reading for July, below the 45,0 points of the previous month and the 43,3 of the flash estimate. This is the lowest reading since June 2009, or since the peak of the global financial crisis.
“The German manufacturing SME is dropped to third place in the ranking of the eurozone's 'big four' in July”explains Tim Moore, economist at Markit, the company that prepares the report. “This is indicative of the sharp deterioration in business conditions over the course of the month.”
The sub-index relating to production fell for the fourth consecutive month in July, to 42,2 points, the lowest since April 2009, while that relating to new orders recorded the thirteenth consecutive monthly decline.
