<ul><li>Prior 46.2</li></ul><p style=““ class=“text-align-justify“>The downturn in Germany’s important manufacturing sector eases in December, with an improvement in supply conditions helping to alleviate some of the pain from price pressures. That said, new orders were down for a ninth consecutive month as the outlook remains dim despite manufacturers being less pessimistic towards the end of the year. S&P Global notes that:</p><p style=““ class=“text-align-justify“>“Some of the gloom surrounding the German manufacturing sector has been lifted, with December’s PMI survey showing the downturn in factory output levels easing, and less concern towards the year-ahead outlook. </p><p style=““ class=“text-align-justify“>“The survey signalled better availability of materials and with it an easing of the decline in production. Still, rapidly falling new orders remains an issue for many manufacturers, particularly intermediate goods producers (i.e. makers of components for other businesses), with high stocks being just one of the factors weighing on demand. </p><p style=““ class=“text-align-justify“>“With expectations remaining pessimistic, it suggests that in companies‘ minds the downside risks to future production continue to outweigh any growth opportunities. The outlook has, however, improved compared to the situation a few months ago, with concerns towards gas prices and supplies having subsided somewhat. </p><p style=““ class=“text-align-justify“>“On the price front, we’re seeing further evidence of disinflationary forces in the manufacturing PMI survey. Although still historically elevated, the rate of factory gate price inflation has more than halved from its peak in the spring of last year, as supply chain bottlenecks ease and firms face greater difficulty passing on cost increases to customers.“</p>

This article was written by Justin Low at www.forexlive.com.