Germany’s Rising Manufacturing Signals a Stronger Path Ahead
Germany’s final manufacturing PMI in September
According to a report by Markit Economics, Germany’s final manufacturing PMI stood at 60.60 in September 2017, compared to 59.30 in August. The PMI figure beat preliminary market expectations of 60.
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The strong performance in Germany’s manufacturing PMI was mainly due to the following factors.
- Production volume and output rose at a faster rate in September 2017.
- New business orders and export orders performed stronger in September 2017.
- Employment rose at a faster pace in September 2017.
Performance of various ETFs in September
The iShares MSCI Germany ETF (EWG), which tracks the performance of Germany’s performance, rose 3.5% in September 2017. The Vanguard FTSE Europe ETF (VGK), which tracks Europe’s (HEDJ)(EZU)(IEV) economic performance, also rose 3.2% in September 2017.
Germany’s manufacturing PMI recorded a stronger improvement in September 2017—the biggest expansion in the last five years. The rising business climate suggests that the domestic economy is improving at a stronger rate. As Germany is the powerhouse of the Eurozone, stronger economic activity in the country is a positive factor for the Eurozone also.
In the next part of this series, we’ll analyze the final manufacturing PMI for Spain in September 2017.