The HCOB Germany Manufacturing PMI ticked up to 49.6 in October 2025, compared to market expectations and September’s 49.5, signaling a continued mild contraction in the sector. Output expanded for the eighth consecutive month, though at a slower pace, with the output index easing to a three-month low. There was a marginal rise in new orders after the previous month’s dip, while backlogs continued to decline. Employment fell for the seventeenth straight month, the sharpest drop since June, as manufacturers remained cautious amid supply chain challenges, particularly in semiconductors and machinery. On prices, input costs continued to fall, albeit at a slower rate, while output prices increased for only the second time in two and a half years. Business confidence weakened further, reflecting concerns over high costs, global competition, and persistent uncertainty in the industrial outlook.