By Maria Martinez
BERLIN, March 2 (Reuters) - Germany's manufacturing sector showed signs of recovery in February on the back of accelerating increases in output and new orders, according to a survey released on Monday.
The headline HCOB final Purchasing Managers' Index (PMI) for German manufacturing, compiled by S&P Global, rose to 50.9 in February, from 49.1 in January, signalling improving factory operating conditions in Germany.
February's reading marks an expansion above the 50.0 mark for the first
time since June 2022, indicating growth. A reading below that points to contraction.
Aside from growing output, the upturn was bolstered by a rise in new orders and increased employment levels in the sector.
"Most of the gains came from makers of intermediate and capital goods," said Hamburg Commercial Bank chief economist Cyrus de la Rubia.
"For a sector that hasn't had much to celebrate in recent years, this is already a pretty upbeat development," he added.
Manufacturers remained optimistic about the year ahead, with expectations reaching their highest level in exactly four years.
"A lot of that confidence likely comes from government infrastructure stimulus and the big jump in defence spending, both of which are driving domestic demand - there really does seem to be a structural shift underway," said de la Rubia.
(Reporting by Friederike Heine; Editing by Toby Chopra)
