Manufacturing sector recession lasting longer than expected (Il Sole 24 Ore Radiocor) - London , 02 Sep - In August, the Germany purchasing managers' index for the manufacturing sector fell to a five-month low of 42.4 from 43.2 in July, according to data released by S&P Global and the Hamburg Commercial Bank.

The manufacturing output index instead rose to a two-month high of 42.8 from 42.5 the previous month.

A reading below 50 signals contracting sector activity.

"The recession in Germany's manufacturing sector is dragging on way longer than anyone expected," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank. "August saw an even steeper drop in incoming orders, killing off any hope for a quick bounce back. The HCOB PMI shows that the downturn has been going on since mid-2022, which is unusually long.

Normally, over the last 30 years, the industry has managed to recover within a maximum of 20 months of a recession starting. But this time, things are different, and China seems to be the main culprit. The country is stepping up its game, competing head-to-head with German industrial companies - not just in China, but also in Germany and in other key markets, especially in the automotive and mechanical engineering sectors.".

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(RADIOCOR) 02-09-24 10:04:08 (0175) 5 NNNN