uploads///image

What’s Affecting Germany’s Manufacturing Activity?

By

Dec. 4 2020, Updated 10:53 a.m. ET

Germany’s final manufacturing PMI in March 2018

According to a report by Markit Economics, Germany’s final manufacturing PMI (purchasing managers’ index) stood at 58.2 in March as compared to 60.6 in February 2018. The PMI figure was slightly below the preliminary market estimate of 58.4. Germany’s manufacturing PMI witnessed a massive drop in performance in March 2018.

Germany’s manufacturing PMI in March 2018 was mainly due to the following factors:

Article continues below advertisement
  • Production volume and output growth remained weaker in March 2018. It was the slowest expansion in factory output since August 2017.
  • The new business order and export orders also slowed in March 2018. New orders growth was the slowest since December 2016.
  • Similarly, employment in the manufacturing sector also weakened in that month.

Performance of various ETFs in March

The iShares MSCI Germany ETF (EWG), which tracks the performance of Germany, fell 1.2% in March 2018. However, the Vanguard FTSE Europe ETF (VGK), which tracks Europe’s (N100-INDEX) economic performance, rose 0.3% in the same month.

The weaker improvement in Germany’s manufacturing PMI in March was mainly due to the rising uncertainty about the global trade environment. The weaker consumer sentiment, demand outlook, and business confidence affected the overall performance of the manufacturing industry in March 2018.

In the next part of this series, we’ll analyze the performance of Spain’s manufacturing PMI in March 2018.

Advertisement

More From Market Realist

    • CONNECT with Market Realist
    • Link to Facebook
    • Link to Twitter
    • Link to Instagram
    • Link to Email Subscribe
    Market Realist Logo
    Do Not Sell My Personal Information

    © Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.