span>span>Thursday 23rd April 2026/span>span> - 09:55 (BST)/span>/span>
Germany’s manufacturing sector lost momentum in April, with the S&P Global Manufacturing PMI easing to 51.2 from 52.2 in March, in line with expectations. While the index remains in expansion territory, the slowdown points to fading strength in what had been a key support for the Eurozone economy.
Both output and new orders weakened notably, with firms highlighting geopolitical uncertainty and softer external demand as key drags. The cooling in activity fed through to the labour market, with employment declining again alongside a continued reduction in backlogs of work.
Cost pressures intensified across the sector, driven by higher prices for raw materials such as metals and plastics. Input cost inflation climbed to its highest level in over three-and-a-half years, while firms raised output prices at the fastest pace in 39 months in an effort to protect margins.
The outlook has deteriorated, with manufacturers growing more cautious amid rising costs, supply disruptions and weakening demand. This loss of momentum in Germany’s industrial base is likely to weigh on broader Eurozone growth expectations.
Elsewhere, services activity fell into contractionary territory, pulling the composite PMI down to 48.3 and marking the first decline in overall private sector activity since mid-2025. The broader slowdown is adding to pressure on the euro, as markets increasingly price in a softer growth outlook and a more cautious policy stance from the European Central Bank.
