Germany: Tentative signs of recovery? – BNP Paribas

According to Raymond Van Der Putten, analyst at BNP Paribas, Germany’s GDP has been stagnant since the mid-2018, largely because of the falling industrial activity.

Key Quotes

“In March, the manufacturing PMI reached 44.1, pointing to the sharpest contraction in output since mid-2012. However, the tide could be changing. For example, the IFO business climate indicator strengthened in March, following six consecutive months of decline. Nevertheless, confidence in the manufacturing sector remained on a downward trajectory.”

“Industrial orders started the year rather weak, as they came in 3.6% lower in January than in previous month. Nonetheless, they were at about the same level as during the preceding six-month period. Based on past experiences, this stabilisation could announce an imminent turning of the cycle.”