BERLIN—A sharp fall in new orders weighed on German manufacturing activity in June, darkening the outlook for Europe’s largest economy, a survey showed on Friday.
S&P Global’s final Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of Germany’s economy, fell to 52.0 in June from May’s final reading of 54.8, in line with analysts’ expectations and with a flash estimate.
An index on new orders came in a 43.3, falling from 47.0 in May to hit the lowest level since May 2020 and dropping further below the 50 mark, which separates growth from contraction.
“We’re seeing a rapid correction in underlying demand for German goods,” said Phil Smith, economics associate director at S&P Global Market Intelligence, adding that firms reported “multiple headwinds to export sales.”…