Germany Manufacturing PMI Highest Since 2022

The S&P Global Germany Manufacturing PMI was revised sharply higher to 52.2 in March 2026 from a preliminary of 51.7 and compared to 50.9 in February. The reading pointed to the strongest growth in the manufacturing sector since May 2022, with output and new orders both seeing stronger rates of growth, amid a boost to demand from customers looking to mitigate disruption from the conflict in the Middle East. also, there was a marked deterioration in supplier performance largely reflecting supply disruption stemming from war, which notably included delays to freight from Asia. The extent to which lead times lengthened was the greatest seen since July 2022. Meanwhile, German manufacturers also faced a surge in cost pressures with input price inflation jumping to its highest since October 2022 due to energy and factory gate prices also accelerated. In addition, there were supply chain delays and business expectations retreated sharply to four-month lows.

Germany's S&P Global Manufacturing PMI climbed to 51.7 in March 2026, up from 50.9 in February and exceeding market expectations of 49.5, according to preliminary data. This marks the strongest expansion in Germany’s manufacturing sector since June 2022, driven by the fastest growth in production since February 2022 and the quickest rise in new orders in four years. Firms reported that the Middle East conflict spurred demand, with customers seeking to avoid supply disruptions and build up inventories. However, supply chain pressures intensified, with lead times lengthening for a seventh consecutive month, the most since July 2022. Input cost inflation surged to its highest since October 2022, fueled by rising energy, fuel, transportation, wages, and raw material costs, while output price inflation hit a three-year peak. Despite the current growth, business sentiment weakened due to ongoing concerns about the war’s impact on the economy.

The HCOB Germany Manufacturing PMI was revised slightly up to 50.9 in February 2026 from a preliminary of 50.7, compared to 49.1 in January. The PMI climbed into growth territory for first time in over three-and-a-half years, driven in large part by stronger increases in both output and new orders and slower decreases in employment and stocks of purchases. There was also an increase in cost pressures, with input price inflation hitting its strongest in over three years. Factory gate charges rose for the first time four months, albeit only modestly. Meanwhile, business expectations reached their highest since February 2022. “A lot of that confidence likely comes from government infrastructure stimulus and the big jump in defence spending. We expect domestic demand to be the main driver of manufacturing growth this year”, Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said.