Germany’s HCOB Manufacturing PMI registered 49.8 in August 2025, slightly below the flash estimate of 49.9 but up from 49.1 in July. The reading marked the strongest level since mid-2022, when the index first dipped below the 50.0 threshold separating growth from contraction. New orders rose for a third consecutive month and at a faster pace than in July, while output growth accelerated to its quickest since March 2022, extending the current six-month expansion. However, firms continued to cut jobs at a faster rate, and backlogs of work declined, albeit at the slowest pace in over two years. On the cost side, both input and output prices fell, with output charges dropping at the steepest rate in six months. Business confidence, meanwhile, slipped further from June’s recent peak.