The crisis in the manufacturing sector in Germany
The manufacturing sector in Germany is going through a period of deep recession, as evidenced by the preliminary PMI data for December. The manufacturing index fell to 42.5 points, down from 43 in November, marking the lowest in the last three months. This figure is worrying, since an index below 50 points indicates a contraction in economic activity. The crisis is attributable to several factors, including rising energy costs, interruptions in supply chains and a decrease in global demand
.
Recovery in the service sector
Contrary to the situation in manufacturing, the service sector has shown signs of recovery. The services index exceeded the 50-point mark, going from 49.3 to 51, which indicates an expansion phase. This change suggests that, while manufacturing continues to struggle, services are benefiting from higher domestic demand and a recovery in consumption. Sectors such as tourism, restaurants and financial services are contributing to this growth, offering a glimmer of hope for the
German economy.
Future Prospects and Composite Index
The composite index, which summarizes the performance of the two sectors, rose to 47.8 points compared to 47.2 in November. Although there has been slight growth, the index still remains below the critical 50-point threshold, which separates contraction from economic expansion. The future prospects for the German economy remain uncertain, with analysts closely monitoring global developments and domestic economic policies. The next Federal Reserve meeting, scheduled for Wednesday, could further influence the market and economic expectations in Europe.