The index has now registered above the neutral 50 threshold in each of the past four months, although it remained just shy of its long-run average of 52.2.

It is a single-figure measure of global macroeconomic conditions on a trade-weighted basis for German manufacturers, with additional series compiled for major world regions and markets.

Alongside strong increases in business activity in both the United States and China, where growth was the fastest since April 2022 and May 2023 respectively, German export conditions were boosted by improved economic performances across parts of Europe, most notably in Spain and the Netherlands, S&P Global, which compiled the PMI data, said in a release.

Owing to ongoing weakness in parts of central Europe and a renewed decline in activity in France, the overall rate of improvement remained only modest (index at 50.8), and considerably slower than those recorded in Asia (54.1) and North America (53.9).

German export sales took a sizeable step towards stabilisation in May, with the seasonally adjusted HCOB Germany manufacturing PMI new export orders index jumping from 44.5 in April to 48.9 in May.

The index has now risen in eight of the past ten months, and although still below the 50 threshold that separates growth from contraction, the latest reading was the highest for over two years and indicative of only a modest decline.

Germany improved its position in the global rankings for export sales performance, rising from 25th place among the 29 economies for which comparable data are available in April, to 19th in May.

"Germany's export industry is showing promising progress….A major driver of this progress is robust growth in Asia and North America, indicating that key conditions for increased demand for German products are being met. Europe as the most important export destination is doing better, too,” HCOB chief economist Cyrus de la Rubia said.

Fibre2Fashion News Desk (DS)