31 March 2025 – China’s industry is gaining momentum: the official Purchasing Managers’ Index (PMI) rose to 50.5 points in March – the highest value in a year. Germany PMI points to improved situation. Olaf Scholz: ‘We do not consider tariffs to be a suitable instrument’ – outgoing German chancellor with a light moment.
China’s industry gains momentum – PMI at its highest level for the year
China’s industry is gaining momentum: the official Purchasing Managers’ Index (PMI) rose to 50.5 points in March – the highest level in a year. At 50.2 points, the index had already exceeded the growth threshold of 50 in February, signalling expansion. Outgoing German Chancellor with a light moment: ‘We do not consider tariffs to be a suitable instrument.’
New orders in particular picked up noticeably
New orders in particular picked up noticeably. The sub-index rose to 51.8 points, also reaching a twelve-month high. Analysts see this as a sign of stable domestic demand and increased confidence in the Chinese economy.
The services and construction sectors also grew: the so-called non-manufacturing PMI climbed from 50.4 to 50.8 points. Observers attribute this primarily to increased government investment in the infrastructure sector.
Despite international challenges, the world’s second-largest economy is proving robust. With a GDP of around 18 trillion US dollars and targeted fiscal policy measures, the growth target of around five per cent for 2025 remains achievable according to experts.
The combination of strong domestic demand, government support and stable exports is fuelling cautious hopes of a sustainable recovery.
Flash Germany PMI points to an improved situation
The HCOB Flash Germany Manufacturing PMI rose to 48.3 in March (Feb: 46.5), a 31-month high. At 52.1 points, the Flash Germany Manufacturing PMI Output Index even improved to its highest level in three years.
The upturn in manufacturing was largely driven by stronger demand in the sector, with manufacturers of goods reporting their first increase in new orders since March 2022. In the cases where an increase was recorded, some companies pointed to stronger domestic demand and customers trying to replenish their inventories.
Outgoing German Chancellor calls for more free trade
On the eve of the opening of the Industrie Messe trade fair in Hanover, Germany’s outgoing Chancellor Olaf Scholz called for more and faster free trade agreements between the European Union and key trading partners in a light-hearted moment.
Olaf Scholz: “We do not consider tariffs to be a suitable instrument”
In his speech, he explained that the German Federal Government and the European Union continue to take a clear stance: ‘We will continue to work in favour of free and fair global trade. We do not consider tariffs to be a suitable instrument for the exchange of goods and services between nations, but we believe that the model that has existed in recent decades has brought good prosperity.’
Olaf Scholz seems to have once again forgotten that the red-green transitional government of German Chancellor Olaf Scholz, who is still in office, is clearly to blame for rampant global protectionism with its measures.
EU Safeguard tariffs extended at the behest of the German government
After all, it was his Green Federal Minister for Economic Affairs Robert Habeck who had played a leading role in advocating the continuation of the EU Safeguard measure on certain steel products and whose ministry had also been involved in the bureaucratic monster of the EU CO2 border adjustment tax CBAM.
New German government must deliver on reducing protectionism
The German Chancellor should have campaigned for less protectionism in the world during his term of office instead of just courting large corporations in the German Chancellery. It is to be hoped that the next German government will have a bright moment sooner and actively work to reduce the protectionism that has become ‘fashionable’.
Latest news
- Indonesian nickel ore prices jump significantly higher
- Steel crisis or the standard formula once again?
- The war of numbers: Is Aluminium Deutschland twisting the facts?
We at the Gerber Group have been trading in stainless steel worldwide for over 20 years. We are your experts when it comes to purchasing, import, logistics and services. Information is a vital part of this. Because only then can you and we make the right decisions. Do you have any questions? Contact us now.
Disclaimer: Many things here represent our opinion. Others are information from the Internet. We can therefore never claim to be correct or complete. And never base a business decision solely on the news you receive from us.
