The HCOB Germany Manufacturing PMI fell to 48.4 in November 2025 from 49.6 in October, below the expected improvement to 49.8, marking the sharpest contraction in six months, according to preliminary estimates. Output expanded at its slowest pace since July, while new orders fell for the second time in three months, driven largely by a sharper decline in export sales. Backlogs of work in manufacturing also declined further, reflecting reduced capacity pressures. Employment in the sector continued to fall, with staffing levels decreasing slightly faster than in October. On the price front, factory gate charges fell for the first time in four months, and purchase prices continued to decline, although the rate of decrease was modest and among the weakest in the recent downward trend. Despite these challenges, manufacturers reported stronger business confidence, with optimism about production over the next year reaching a three-month high.