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01.06.202607:55:00UTC+00German Manufacturing Momentum Cools as HCOB PMI Slips to 50.1 in May

Germany’s manufacturing recovery showed signs of losing steam in May, as the HCOB Germany Manufacturing PMI edged down to 50.1, compared with 51.4 previously. The latest reading, updated on 01 June 2026, signals that while the sector remains marginally in expansion territory, growth has slowed notably.

The May 2026 figure of 50.1 sits just above the 50-point threshold that separates expansion from contraction, suggesting factory activity is close to stalling. The decline from the earlier 51.4 reading indicates softer momentum in output and orders, raising questions about the durability of the recent industrial rebound in Europe’s largest economy.

With manufacturing a key pillar of Germany’s export-driven model, the near-flat PMI reading will be closely watched by investors and policymakers assessing the strength of the country’s broader economic outlook in the months ahead.

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