S&P Global Market Intelligence deputy director Phil Smith said German
manufacturing sustained a recovery in October despite renewed cost pressures.
Output and new orders slowed but remain robust by historical standards,
supported by strong domestic demand—partly linked to higher government defence
and infrastructure spending—and a recovering export sector. Input-cost inflation
has reaccelerated to its highest level since May and supply-chain bottlenecks
have worsened, prompting firms to cut their expectations for the year ahead;
high oil and energy‑intensive raw material costs and a surge in global
electronic‑components demand are adding to inflationary pressure. If bottlenecks
continue to deteriorate, they could pose downside risks to growth.
