The HCOB Germany Manufacturing PMI was confirmed at 49 in June 2025, the highest since August 2022, though it still signals a slight contraction in overall manufacturing business conditions. New orders rose at the strongest pace since March 2022, led by increased demand both at home and abroad. Also, manufacturers scaled up production for the fourth time and purchasing activity increased for first time in three years. Even so, stocks of purchases and post-production inventories continued to fall. Also, employment continued to be scaled back and backlogs of work fell in a sign of underutilised capacity while supplier delivery times improved. On the price front, average prices paid by German manufacturers for inputs fell amid competition among suppliers and a weaker US dollar. Factory gate charges fell for a second straight month. Lastly, confidence was the highest since February 2022, reflecting the plans for increased public sector spending and hopes of a wider economic upturn.