Germany’s flash Manufacturing PMI unexpectedly rises strongly to 52.2 vs. 50.1 estimates
German flash HCOB Composite PMI returns to the expansion trajectory in July after declining in June. Preliminary figures show that the overall business activity expanded to 51.2. The Composite PMI was seen arriving at 49.8 from 49.5 in June. A figure below 50.0 is considered a contraction in overall business activity. The Composite PMI increased significantly due to upbeat factory sector activity.
The Manufacturing PMI rises at a stronger-than-expected pace to 52.2 from 50.3 in June, beating 50.1 estimates. The Services PMI contracts again but at a moderate pace to 49.6. The data was seen marginally higher at 48.8 from the previous reading of 48.6.
Market reaction
The initial reaction by the Euro (EUR) appears to be negative after the data release. EUR/USD retreats from its intraday high of around 1.1400
Economic Indicator
HCOB Manufacturing PMI
The Manufacturing Purchasing Managers Index (PMI), released on a monthly basis by S&P Global and Hamburg Commercial Bank (HCOB), is a leading indicator gauging business activity in Germany’s manufacturing sector. The data is derived from surveys of senior executives at private-sector companies. Survey responses reflect the change, if any, in the current month compared to the previous month and can anticipate changing trends in official data series such as Gross Domestic Product (GDP), industrial production, employment and inflation. As Europe’s main manufacturing hub, German PMI data can also be a bellwether of the sector’s health in the broader continent. The index varies between 0 and 100, with levels of 50.0 signaling no change over the previous month. A reading above 50 indicates that the manufacturing economy is generally expanding, a bullish sign for the Euro (EUR). Meanwhile, a reading below 50 signals that activity among goods producers is generally declining, which is seen as bearish for EUR.
Read more.Last release: Fri Jul 24, 2026 07:30 (Prel)
Frequency: Monthly
Actual: 52.2
Consensus: 50.1
Previous: 50.3
Source: S&P Global
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