According to a business survey, the pace of expansion of the German manufacturing industry accelerated in August, and new orders increased sharply, driving output to the strongest increase since January 2022. The final value of Germany's manufacturing PMI rose to 54.3 in August and 52.2 in July, slightly higher than the initial value of 54.1. According to the data, new orders have been growing steadily for the third month in a row, driving manufacturing output to achieve the strongest growth in more than four and a half years. Companies said that defense spending, data center construction, and inventory hoarding are all driving up demand. Supply pressure has also increased further. Supplier delivery times have been extended to the highest level in 3 months. At the same time, due to tight supply, companies are seeking to ensure the supply of inputs, and the growth rate of procurement activities is the fastest since May 2022. Phil Smith, S&P's Deputy Director of Global Market Intelligence and Economics, said that this round of growth is mainly driven by the intermediates industry, which shows that safety stocks still support economic growth to a certain extent in the face of tight supply. Smith added, “Business confidence in output in the coming year has improved markedly and has now reached the highest level since the outbreak of the Middle East conflict.”

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.