German growth edges up in March as manufacturing production rises, PMI shows

Maria Martinez

Mon, Mar 24, 2025, 1:36 AM 1 min read

By Maria Martinez

BERLIN (Reuters) - Business enactment successful Germany's backstage assemblage roseate astatine the quickest complaint for 10 months successful March, amid a archetypal summation successful manufacturing accumulation for astir 2 years, according to a survey published connected Monday.

The HCOB German flash composite Purchasing Managers' Index, compiled by S&P Global, roseate to 50.9 successful March from 50.4 successful February, its highest since May past twelvemonth and supra the 50.0 threshold that separates maturation from contraction.

Analysts polled by Reuters had forecast a speechmaking of 51.0.

"Economic maturation successful the archetypal 4th looks promising, with the composite PMI staying supra the expansionary threshold each month," said Cyrus de la Rubia, main economist astatine Hamburg Commercial Bank.

Furthermore, Germany approved past week plans for a spending splurge that aims to revive maturation successful Europe's largest system and standard up the military.

Thanks to the fiscal package, the archetypal 4th could people the opening of a much sustained recovery, de la Rubia said.

Although it remained successful contraction territory, the manufacturing scale improved to 48.3 from 46.5, beating expectations of a emergence to 47.0 acknowledgment to stronger demand.

"Manufacturers person ramped up accumulation for the archetypal clip successful astir 2 years," said de la Rubia, attributing the uptick to an import roar from the U.S. and anticipated benefits from Germany's caller infrastructure and defence package.

The services assemblage mislaid momentum, with the concern enactment scale falling to 50.2 from 51.1, missing the forecast of 51.6 but inactive successful maturation territory.

Inflationary pressures eased, with input costs and output prices rising astatine their slowest gait since past October, the survey showed.

(Reporting by Maria Martinez; Editing by Toby Chopra)