As factories facing weak demand because of the coronavirus pandemic, Germany’s manufacturing sector continued to contract in May. Businesses were pessimistic about the future, a survey published on Monday showed.
From 34.5 in April, IHS Markit’s final Purchasing Managers’ Index (PMI) for manufacturing rose to 36.6. The flash reading was 36.8. The sector accounts for about a fifth of Europe’s biggest economy.
Even before the onset of the pandemic, manufacturing production was already down 7-8 percent from a peak in late 2017 and now that figure looks to be in the region of 25-30 percent. Output last month weakened more slowly than the previous month. With the investment goods sector hit especially hard, factory staff cuts accelerated to their fastest pace in 11 years.
