Germany's manufacturing sector continued to weaken in August, with new orders declining significantly, reflecting reduced demand and underutilized production capacity, according to a recent survey.

This downturn is particularly concerning for Taiwan, as Germany is the second-largest market for Taiwanese screw exports. Industry participants warned that the weakening German economy could further hinder Taiwan's screw export recovery in the second half of 2024.

According to the Taiwan Industrial Fasteners Institute, screw exports to Germany from January to July 2024 fell by 13.31% in volume compared to the same period last year.

Germany's August Purchasing Managers' Index (PMI) fell to 42.4, further below the 50-point threshold signaling contraction. Additionally, German Volkswagen hinted at possible plant closures due to rising competition from cheaper Chinese electric vehicles.