German Manufacturing PMI Shows Positive Start to the Year

German manufacturing began the year on a positive note, according to data released on February 2. According to Jin10, the final Purchasing Managers' Index (PMI) for January rose to 49.1 from December's 47.0, slightly above the preliminary estimate of 48.7 and marking a three-month high. However, it remains below the 50 threshold that separates growth from contraction. This improvement was driven by a slight increase in new orders, marking the first rise in three months, although employment levels continued to decline significantly. This decline reflects ongoing corporate restructuring and unfilled job vacancies. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented, "It seems like a recovery might have started. Output has quickly rebounded from December's decline, and optimism about future output has increased from an already high level, with new orders also seeing a slight uptick." Regarding the reduction in employment, he noted that companies that have streamlined their production processes could be well-positioned if demand picks up this year. Manufacturers remain optimistic about the year ahead, with the expectations index reaching a seven-month high.