German exports flat in January ’25

Germany’s export growth remained stagnant in January, with the HCOB Germany Manufacturing PMI Export Conditions Index holding steady at 50.0, signalling unchanged global business activity since December, according to S&P Global.

This marks seven months of stagnant export conditions, well below the pre-pandemic average, as German manufacturers confront significant challenges from weak global demand at the start of 2025.

Globally, North America showed growth, although the index eased from 54.3 to 52.0. Asian output growth slowed, notably in China, while European export conditions fell for the eighth consecutive month, though at a slower pace than in October 2024.

The HCOB New Export Orders Index for Germany rose to 46.5, the highest in eight months, but remains below the 50.0 threshold, indicating a continued decline.

Manufacturers noted some improvement in client spending, partly due to restocking, and sales to China showed modest growth. However, competitive pressures, cutbacks in client budgets, and geopolitical tensions have led to postponed projects and cautious business investment plans.

Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, warned that Germany’s export sectors continue to struggle, particularly in automotive and machinery. He attributed the lack of momentum to weak demand from emerging markets, ongoing trade tensions, and geopolitical uncertainties.

Attribution: Amwal Al Ghad English

Subediting: M. S. Salama