German export conditions fall to 6-m low in July – PMI

Germany’s export conditions hit a six-month low in July, according to the HCOB Germany Manufacturing PMI Export Conditions Index, which dropped to 49.9.

This reading is just below the 50.0 mark separating growth from contraction and down from 50.8 in June, reflecting a broader weakening in global export conditions, with the index for Europe falling to 47.9, the lowest since January.

The downturn is attributed to weaker performance across all regions in Germany, with North America showing the strongest growth, driven by a robust upturn in the US.

Asia also experienced mixed results, with China showing reduced momentum while Japan saw growth.

Sector-specific performance revealed that the automotive industry faced the sharpest decline, with a notable acceleration in contraction. Non-cyclical consumer goods also weakened, while the chemical sector saw robust growth, buoyed by stock-replenishment efforts.

Globally, export orders decreased for the second consecutive month, with Germany’s export orders remaining below the 50.0 threshold, primarily due to a steep drop in foreign orders for automobiles and auto parts. In contrast, countries like India and Vietnam reported stronger export performances.

Attribution: S&P Global