German factory production contracted at the fastest rate on record in April, with export companies cutting jobs at the fastest pace in nearly 11 years, as a result of a significant drop in demand due to the Coronavirus.
Data released by IHS Markit showed Germany’s final Manufacturing PMI fell to 34.5, the lowest reading since March 2009, while expectations were for a decrease to 34.4 from 45.4 in March.
The data showed that German companies had been heavily affected by a government plans to avoid mass layoffs, with facilities closed and workers switching to shorter hours in order to reduce the spread of the virus.
With production declining at the fastest rate in the data series since early 1996, manufacturers cut jobs at the fastest pace since May 2009.
Analysts' expectations point to a prolonged supply and demand disruption until at least this year, reducing the chance of a rapid recovery.
As of 08:52 GMT, the EUR/USD pair traded lower at 1.0943, while the
lowest level recorded during the session was at 1.0924.