German manufacturing export conditions drops in Sept.

Germany’s HCOB Manufacturing PMI Export Conditions Index dropped to 49.8 in September, its lowest level in eight months, signalling a contraction in export conditions.

This decline from August’s 50.7 reflects weaker contributions from Europe, the US, and Asia, with the automotive sector experiencing the sharpest drop in new export orders since May 2020.

Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, highlighted the multiple challenges German exporters face, including weak domestic demand and a slowing global economy. While the North American market remains stable with an index of 52.7, Europe is struggling, indicated by an index of 48.6.

The automotive sector saw the most significant decline, with its index plummeting to 28.7. In contrast, the chemicals sector showed resilience, achieving an index of 51.8 due to increased demand from falling oil prices and customer restocking.

The report underscores significant challenges ahead for German manufacturers amid ongoing global economic uncertainties.