Germany's manufacturing activity at over 3-year low in June

ANKARA

German manufacturing activity in June has posted the fastest deterioration for 37 months, according to the preliminary purchasing managers’ index (PMI) data released on Friday.

The Hamburg Commercial Bank (HCOB) Flash Germany Manufacturing PMI tumbled to 41 in June from 43.2 in May, a report by the US-based financial services company S&P Global showed.

This was the eleventh consecutive month of contraction as the headline figure remained below 50, the threshold that separates growth from contraction.

Order books fell at the sharpest pace for eight months amid reports of customer hesitancy and destocking, said the report.

Meanwhile, employment levels increased at the smallest pace in two-and-a-half years.

Cyrus de la Rubia, chief economist at the Hamburg Commercial Bank, said the data released pointed a contraction in the second quarter.

The German economy entered recession with its GDP falling 0.3% in the first quarter and 0.4% in the previous quarter as decreases in government spending and private consumption weighed heavily on Europe's largest economy.