Germany’s manufacturing exports see modest uptick

German manufacturing export conditions showed a modest improvement in August 2024, with the HCOB Germany Manufacturing PMI® Export Conditions Index rising to 50.7 from 49.9 in July.

This marks a positive shift for the first time in two months, indicating a slight recovery in global demand for German exports.

Despite this uptick, export performance remains weak. The HCOB Germany Manufacturing PMI New Export Orders Index fell sharply to 40.8, its lowest since November 2023, reflecting a steep decline in new export orders.

This drop, led by a significant downturn in the automotive sector (32.4), highlights the ongoing challenges faced by German manufacturers.

North America (53.5) continued to be the fastest-growing region, with strong US economic expansion driving demand. Asia (52.7) also saw improvements, with India, Vietnam, and Thailand reporting notable increases in orders.

Conversely, Europe (49.3) experienced its third consecutive month of decline, although the pace of the downturn slowed. Notable gains were seen in France and southern Europe, partly due to a temporary boost from the Olympics.

The overall outlook remains cautious, as Germany recorded the sharpest drop in new export orders among the 29 economies surveyed. The automotive sector, in particular, faced its fastest decline in new export business since June 2020.