Germany's Manufacturing Sector Faces Stagnation in May, Expert Says

Phil Smith, Deputy Director of Economics at S&P Global Market Intelligence, stated on June 1 that Germany's manufacturing sector experienced stagnation in May, confirming warnings from recent PMI surveys. According to Jin10, these surveys indicated that growth driven by pre-ordered demand might diminish. The underlying health of demand appears to be revealing itself, as new orders saw their first decline this year amid high uncertainty and soaring prices. Cost pressures across the manufacturing sector continue to rise, although output price inflation remained steady compared to April, as weak demand led some manufacturers to exercise caution in pricing.