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German manufacturing just slumped to the lowest level since the financial crisis — and it’s a major warning sign for the global economy

March 22, 2019

Stocks tumbled on Friday after a closely watched survey of German manufacturers delivered its lowest reading since the financial crisis.

Germany’s manufacturing Purchasing Managers’ Index (PMI) plunged from 47.6 in February to 44.7 in March. A survey reading below 50 indicates a contraction in activity.

The “alarming slide remains driven by a steady deterioration in new orders which fell at their quickest rate since 2012 thanks to persistent weakness in the auto sector and delayed decision making — probably in part due to Brexit uncertainty — among many clients.” said Claus Vistesen, chief Eurozone economist at Pantheon Macroeconomics.

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