Germany’s manufacturing sector shrank in May, production grew for the third consecutive month

Business Business: Germany’s manufacturing sector contracted in May, but output rose for the third consecutive month, led by a surge in new export orders. The HCOB Germany Manufacturing PMI stood at 48.3 in May, down slightly from April’s 48.4.

While the overall PMI remained in contraction territory, output continued to rise, led by a second consecutive rise in export orders. International sales rose modestly on the back of better demand from Europe and the U.S., driven mainly by stockpiling ahead of potential tariff hikes.

Employment continued to fall, although at the lowest rate ever. Raw material prices fell, particularly as oil prices fell and the euro strengthened.