The IHS Markit/BME Germany Manufacturing PMI was revised slightly higher to 60.7 in February of 2021 from a preliminary reading of 60.6 and compared to 57.1 in January.
It remains the highest reading since January of 2018 amid robust demand from abroad. Order book growth reaccelerated to the quickest since last October due to higher demand from Asia, especially China, the US and across Europe, with export sales rising to the greatest extent since December 2017.
Production levels were ramped up accordingly, increasing at the fastest rate for three months and led by particularly sharp growth in the capital goods category. Even so, latest data showed a further marked rise in backlogs of work in February. Less positively, however, there was a further deterioration in supply-side conditions, with reports of delivery delays hitting a record high and costs rising sharply.
Nevertheless, manufacturers remained strongly optimistic about the year-ahead outlook for production.