German factory growth climbs to six-year high in May

BERLIN: German factories fired on all cylinders in May with output growing at the strongest pace in more than six years, a survey showed on Thursday, suggesting manufacturing will boost overall growth in Europe’s biggest economy in the second quarter.
Markit’s Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of the German economy, jumped to 59.5 from 58.2 in April.
That was the highest level since April 2011 and put the index well above the 50 line that separates growth from contraction for the 30th consecutive month.
The final figure came in slightly better than an earlier flash reading of 59.4.
Output, new orders and employment all improved at the fastest rates in around six years.
Growth in new export business reached its highest level in seven years.
Manufacturers taking part in the survey pointed to strong demand from Asian customers, IHS Markit said, and domestic demand for industrial goods also remained solid. — Reuters