• S&P Manufacturing PMI for Germany declined to 52 in June.
• Markets remain relatively calm ahead of EU inflation data.

Business activity in Germany's manufacturing sector expanded at a soft pace in June with the S&P Global Manufacturing PMI retreating to 52 (final) in June from 54.8 in May. This reading matched the previous estimate and the market expectation.

Commenting on the data, "we're seeing a rapid correction in underlying demand for German goods," said Phil Smith, Economics Associate Director at S&P Global Market Intelligence. "Inflows of new orders across the sector showed a deepening decline in June, as firms reported a degree of demand destruction from higher prices, growing market uncertainty, and multiple headwinds to export sales." 

Market reaction

This report doesn't seem to be having a significant impact on risk sentiment with Germany's DAX 30 Index trading flat on the day at 12,787 points.