The HCOB Germany Manufacturing PMI was revised higher to 49.1 in January 2026 from a preliminary of 48.7, the highest reading in three months, compared to 47 in December. Output levels returned to growth after a brief contraction in December, supported by increased intakes of new orders, which rose for the first time in three months, albeit only marginally. However, despite a slight improvement in firms’ expectations for activity in the coming 12 months, there was another marked drop in factory workforce numbers, as well as further notable decreases in both pre- and postproduction inventories. There were also growing cost pressures across the sector as input prices rose at the quickest rate for over three years. Still, average factory gate charges fell slightly due to strong competitive pressures.

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