Germany's Manufacturing Sector Shows Signs of Recovery Amid Rising Domestic Demand

Germany's manufacturing sector appears to be on the mend, according to Jonas Feldhusen, a senior economist at Hamburg Commercial Bank. According to Jin10, Feldhusen commented on the latest PMI data, highlighting an increase in production and a significant rise in new orders, partly driven by stronger export demand. The extended delivery times, often indicative of rising demand, further support this positive outlook. The growth is primarily attributed to manufacturers of intermediate products and capital goods. This development is particularly encouraging for an industry that has seen little positive news in recent years. Optimism about future production has increased from already high levels, largely due to government infrastructure stimulus plans and a substantial rise in defense spending, both of which are boosting domestic demand. Over the past five months, total orders have consistently outpaced export orders, suggesting a structural shift is underway. Feldhusen anticipates that domestic demand will be the main driver of manufacturing growth this year.