03.08.202608:05:00UTC+00Germany Manufacturing Sees Strong Start to Q3

The S&P Global Germany Manufacturing PMI was confirmed at 52.2 in July 2026, its highest level in four months and up from 50.3 in June, indicating a renewed improvement in manufacturing activity. “Germany’s manufacturing sector made an impressive start to the third quarter, with a notable rise in export sales helping to drive the strongest production growth in nearly four-and-a-half years. An easing in cost inflation to its weakest level since the outbreak of the Middle East war—largely reflecting the decline in oil prices through June and into early July—also likely provided support,” said Phil Smith, Economics Associate Director at S&P Global Market Intelligence.

Nevertheless, business expectations in the manufacturing sector remain muted and are still below the levels seen before the conflict began. Supply chain disruption continues to pose a risk, with lead times lengthening again in July, partly due to emerging bottlenecks in the global electronics industry.