Germany’s manufacturing sector ends 2024 with accelerating decline

Germany’s manufacturing sector ended 2024 with sharper declines in output and new orders, a clear sign that the manufacturing recovery in Europe’s largest economy is not coming any time soon.

The S&P Global Composite Purchasing Managers’ Index (PMI) for Hamburg fell to 42.5 in December from 43.0 in both October and November.

Readings above 50 indicate growth, while readings below that level indicate contraction.

“The situation in the manufacturing sector remains very bleak,” said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank.

He added that output is falling sharply and new orders are continuing to fall, indicating that the manufacturing sector will not emerge from recession anytime soon.

Employment in the sector fell for the 18th straight month as businesses adjusted and demand weakened, but the rate of job losses slowed to the lowest level since last August.