Revised data shows Germany’s manufacturing sector returned to expansion in May, defying earlier contraction signals.
Germany’s manufacturing PMI was finalized at 50.1 for May, up from a preliminary 49.9, marking a return to growth after months of contraction. The reading signals near-stabilization in factory activity despite persistent uncertainty and rising costs tied to Middle East conflict.
The upward revision follows April’s 49.7 print and beats consensus estimates of 49.9. Last May, the index stood at 43.2, reflecting deeper contraction during the sector’s downturn. The improvement suggests easing supply chain pressures and modest demand recovery.
Markets showed muted reaction, with EUR/USD holding steady near 1.0850 as traders await further data on Eurozone inflation and ECB policy signals.