May saw a further slowdown in the pace of growth of Germany's manufacturing sector, with output, new orders and employment all rising at a weaker rate. Business confidence was also found to have deteriorated, with expectations towards future output the lowest for over two-and-a-half years. Rising oil prices and ongoing capacity constraints in supply chains meanwhile added further pressure on manufacturers by way of an acceleration in input cost inflation.

The headline IHS Markit/BME Germany Manufacturing PMI - a single-figure snapshot of the performance of the manufacturing economy - registered 56.9 in May, down from 58.1 in April.