Latest data released by Markit/BME - 1 September 2020
The preliminary release can be found here. A slight revision lower but it mainly just reaffirms that the German manufacturing recovery is still intact for now at least. That said, there are still fresh concerns with regards to weak domestic demand.
Markit notes that:
"The manufacturing sector continues to make up the ground lost during the lockdown, with the survey data for August showing output growth reaching the fastest since early-2018. There has been a sustained strong rebound in new orders, although it's unclear where the true current level of demand is really at, with some firms still noting a catch-up effect due to orders having previously been delayed during the lockdown.
"The encouraging top-line numbers mask ongoing troubles in some sectors, especially machinery and equipment production, which is being hit by a lack of appetite for investment.
"Factory jobs continued to be lost at an unsettling rate in August, which is bad news for domestic demand. However, with backlogs of work at factories on the rise, we're at least seeing the pace of staff cuts slowing down.
"By contrast, the decline in inventory levels has accelerated, with some firms under financial pressure to streamline stocks and many still showing caution in terms of their purchasing activity."
