Germany manufacturing output returns to growth in January in World Economy News 03/02/2026 Germany’s manufacturing sector started 2026 on a positive note, with output returning to growth after a brief contraction in December, according to the latest HCOB PMI survey data. The HCOB Germany Manufacturing PMI rose to a three-month high of 49.1 in January, up from December’s 47.0, though it remained below the 50.0 no-change threshold for the 43rd consecutive month. The Manufacturing Output Index climbed to 51.4 in January from 48.3 in December, indicating a modest rise in production volumes. This upturn was supported by a slight increase in new orders, the first in three months, although new export sales continued to contract marginally. German manufacturers worked through backlogged orders during January, with outstanding business falling at a faster rate than in December. Despite the production increase, companies continued to reduce their workforces, citing reorganizations, unfilled vacancies, and cuts to contractor numbers. The survey revealed substantial decreases in both pre- and post-production inventories, with finished goods stocks dropping at the steepest rate since August 2021. Purchases of inputs declined only fractionally, marking the slowest rate of decline in six months. Input costs rose for the second consecutive month, with the rate of inflation reaching a 37-month high. Manufacturers reported upward pressure particularly on metals prices, but also on energy, electronics, and wages. Despite these cost pressures, factory gate prices fell for the third straight month due to strong competition, though the rate of decline eased. Looking ahead, German manufacturers expressed optimism about the year ahead, with expectations reaching a seven-month high. Companies cited new products, innovations, and greater investment spending as reasons for their positive outlook. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, noted signs of a potential recovery, highlighting the rebound in output, increased optimism, and slight uptick in new orders. He mentioned that manufacturers see opportunities in defense-related production amid geopolitical tensions and increased military spending. However, de la Rubia cautioned that “the situation remains fragile,” pointing to continued inventory drawdowns and shrinking backlogs of work. He also noted that companies are still reducing jobs at a brisk pace, likely reflecting both productivity measures and responses to years of weak demand. Source: Investing.com 2026-02-03 hellenicshippingnews... window.___gcfg = {lang: 'en-US'}; (function(w, d, s) { function go(){ var js, fjs = d.getElementsByTagName(s)[0], load = function(url, id) { if (d.getElementById(id)) {return;} js = d.createElement(s); js.src = url; js.id = id; fjs.parentNode.insertBefore(js, fjs); }; load('//connect.facebook.net/en/all.js#xfbml=1', 'fbjssdk'); load('https://apis.google.com/js/plusone.js', 'gplus1js'); load('//platform.twitter.com/widgets.js', 'tweetjs'); } if (w.addEventListener) { w.addEventListener("load", go, false); } else if (w.attachEvent) { w.attachEvent("onload",go); } }(window, document, 'script')); tweet Share