Germany factory activity with deeper contraction in June

Germany’s factory activity has shrunk at a much faster pace than expected in June, preliminary data by S&P Global showed.

The HCOB Germany Manufacturing PMI came in at 43.4 in June, down from 45.4 in May.

In comparison, market consensus had pointed to a reading of 46.4.

In June, production contracted the most in three months, after it almost stabilized in the prior month.

New orders also decreased at a substantial rate, while export sales fell at the fastest rate since March, S&P Global said.

In addition, employment in the manufacturing sector decreased for the 12th consecutive month in June.

On the price front, both input and output prices kept decreasing in June, though at slower rates.

Sentiment in the sector remained almost without change in June from May – at its highest level since February 2022.

The EUR/GBP currency pair settled 0.01% lower at 0.8454 on Friday. For the week, the minor currency pair went up 0.32%.