AI Data Insight
Germany's preliminary Manufacturing PMI for May stood at 49.9, down significantly from the previous 51.2 and falling short of market expectations of 51.0, slipping back into the contraction territory. Affected by the Middle East conflict and high inflation, new orders declined, output growth slowed, and corporate cost pressures mounted. In the short term, the manufacturing sector is likely to struggle around the 50-point threshold, while in the medium term, caution is warranted regarding the impact of supply chain disruptions and inflation on the real economy.