Germany's Fragile Recovery Highlights Europe's Manufacturing Divide

INSUBCONTINENT EXCLUSIVE:
48.6 in March, its third consecutive monthly gain and the least severe contraction since January 2023
exporters bracing for potential U.S
tariffs
fragile hope
Output expanded for the first time in 22 months, fueled by clients restocking inventories and U.S
(Photo Internet reproduction)Economists warned this boost might reverse once tariffs take effect, mirroring patterns seen in Asian supply
chains
Meanwhile, speculation about EU defense spending drove cautious optimism in industrial circles, though concrete contracts remain
New orders continued falling for the 21st straight month, and business confidence dipped slightly.Southern European nations dragged on the
manufacturers faced a perfect storm
Six straight months of contraction have pushed factory gate prices to April 2023 peaks, with firms reporting canceled orders from European
clients deterred by post-Brexit paperwork.March also saw the sharpest job cuts in a year, signaling dwindling faith in a near-term
turnaround
Market watchers note divergent policy responses shaping these trajectories.Germany benefits from cheaper Russian energy alternatives and
state-backed industrial modernization grants, while UK firms grapple with stagnant government support and higher National Insurance
industrial base stands at a crossroads