Germany's Manufacturing PMI Hits 44 Months High Marking Expansion Since June 2022

The HCOB Germany Manufacturing PMI rose from 49.1 in January to 50.9 a 44 month high marking the first expansion since June 2022. Output grew for the second straight month at its fastest pace since September 2025, while new orders surged at their strongest rate in nearly four years. New export orders also returned to modest growth. Business expectations climbed to their highest since February 2022, driven by government infrastructure spending and a sharp rise in defence investment. Despite the recovery, challenges persist. Input costs rose for the third consecutive month at the fastest pace since December 2022, fueled by higher metals, energy, wages, electronic components, and the newly introduced Carbon Border Adjustment Mechanism. Factory selling prices increased for the first time since October 2025. Employment fell for another month, though the rate of job losses was the weakest in seven months.