Germany's manufacturing export conditions stagnated in July amid increasing weakness in European markets, according to the Hamburg Commercial Bank (HCOB) Germany Manufacturing PMI Export Conditions Index by S&P Global. The index, which tracks changes in trade-weighted global economic activity, fell to 49.9, just below the 50 mark that separates growth from contraction. This latest reading is down from 50.8 in June and is the lowest since January's 49.3.

The stagnation in overall export conditions largely reflected increasing weakness in European markets. Trade-weighted activity across Europe fell for the second month running and at the fastest rate since January (the respective index at 47.9). Central to this were downturns in economic performance in the Netherlands and Czechia. Spain and Greece remained two of the bright spots in Europe, although both recorded slower expansions than in June.

North America (53.3) was the strongest growth area for the second month running in July, owing to a sustained robust upturn in the US. The latest rise in trade-weighted activity in the region was the least marked for three months, however. This was also the case for Asia (52.8), where a loss of momentum in China offset a return to growth in Japan, as per S&P Global.

Amid a backdrop of faltering global economic conditions, goods producers in the eurozone's largest economy reported a continued decline in international demand at the start of the second half of the year. At 44.4, up marginally from June's 44.1, the HCOB Germany Manufacturing PMI New Export Orders Index remained firmly in sub-50 contraction territory.

Export sales also fell globally for the second month running in July. Although the latest decrease was again only modest, it nevertheless further reversed the brief upturn in trade flows seen between April and May. Among the economies monitored by the survey data, India remained the stand-out as it recorded a sharp and accelerated increase in export sales. Vietnam and Brazil were the best of the rest, while Greece saw the only notable increase in new orders from abroad among the monitored European countries.

Germany remained towards the lower end of the scale for export performance globally in July. The decline in new export orders across the consumer non-cyclicals segment (44.7) was broadly in line with that recorded for the German manufacturing sector as a whole.

Fibre2Fashion News Desk (DP)