Cyrus de la Rubia, chief economist at Commerzbank Hamburg, said that the German manufacturing industry showed signs of recovery in early 2025, but the December slump deepened again, driven by investment and consumer goods factors. The overall PMI index has fallen to its lowest level since February last year. The sharp drop in export orders indicates a very weak start to 2026. In December, the industry was not only affected by weak demand and falling sales prices, but also by rising input prices, which is surprising. Over the past few months, these prices have shown signs of stabilizing, but the rise is something that hasn't happened in almost three years. This increase is likely due to rising prices of industrial metals such as copper and tin, which are more expensive in euros compared to last month and a year ago. Meanwhile, layoffs continued almost unabated in December. Lower investments and cost-saving measures may be driving this trend. However, with the launch of government-supported infrastructure projects and strong demand for defense equipment, things may be different in 2026. In fact, more and more companies now expect production to increase in a year's time.

Cyrus de la Rubia, chief economist at Commerzbank Hamburg, said that the German manufacturing industry showed signs of recovery in early 2025, but the December slump deepened again, driven by investment and consumer goods factors. The overall PMI index has fallen to its lowest level since February last year. The sharp drop in export orders indicates a very weak start to 2026. In December, the industry was not only affected by weak demand and falling sales prices, but also by rising input prices, which is surprising. Over the past few months, these prices have shown signs of stabilizing, but the rise is something that hasn't happened in almost three years. This increase is likely due to rising prices of industrial metals such as copper and tin, which are more expensive in euros compared to last month and a year ago. Meanwhile, layoffs continued almost unabated in December. Lower investments and cost-saving measures may be driving this trend. However, with the launch of government-supported infrastructure projects and strong demand for defense equipment, things may be different in 2026. In fact, more and more companies now expect production to increase in a year's time.