The financial information company IHS Markit reported that the purchasing managers’ index (PMI) for the manufacturing sector in Germany remained unchanged.
The PMI was 57.4 in December, below initial expectations of 57.9, but a rise above 50 suggests that German manufacturing is continuing to grow.
The negative factor putting pressure on the manufacturing sector in Germany is the shortage of semiconductors and raw materials, which has affected many of the country’s industries. Especially in the automotive sector.
The problem of raw material shortages and rising energy prices means that manufacturers have to increase product prices. This leads to higher costs for consumers and inflation fears, which in turn put pressure on consumption as well as economic growth.