Germany's PMI Index Falls to 18-Month Low
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: seekingalpha
- PMI Decline: The Germany Composite PMI Output Index fell to 48.0 in June from 48.8 in May, marking an 18-month low and remaining below the 50-point threshold, indicating economic contraction that could dampen investor confidence.
- Manufacturing Stability: Despite the overall PMI decline, the Manufacturing PMI was revised higher to 50.1 in May 2026, signaling near stabilization in the manufacturing sector amidst ongoing uncertainty and rising costs, potentially providing support for future economic recovery.
- Services Sector Drag: The Services PMI Business Activity Index dropped to 46.8 from 48.1 in May, reaching its lowest level in 43 months, reflecting weakness in the services sector that may lead to a slowdown in overall economic growth.
- Cautious Market Outlook: European stocks showed mixed performance amid political and geopolitical risks, and while there is a cautiously optimistic stance on German equities, the weak economic data may limit investors' risk appetite.
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About GF
The New Germany Fund, Inc. (the Fund) is a diversified, closed-end management investment company. The Fund seeks long-term capital appreciation primarily through investment in middle-market German equities. The focus of the Fund's investments lies within Germany. Under normal market conditions at least 80% of the Fund’s net assets are invested in equity or equity-linked securities. The Fund invests in range of sectors, which include aerospace and defense; auto components; automobiles; banks; building products; chemicals; electrical equipment; independent power and renewable electricity producers; insurance; Internet and direct marketing retail; information technology (IT) services, life sciences tools and services; metals and mining; real estate management and development; software; textiles, apparel and luxury goods; trading companies and distributors; diversified financial services; commercial services and supplies, and others. The Fund's investment advisor is DWS International GmbH.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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