BERLIN, Jan 2 Reuters Germany39;s manufacturing sector ended 2024 on a downbeat note, with sharper declines in output and new orders, in a clear sign that industry in Europe39;s largest economy will not be coming out of its downturn anytime soon, a survey showed on Thursday.

The HCOB Germany Manufacturing Purchasing Managers39; Index PMI, compiled by SP Global, fell to 42.5 in December from 43.0 in both October and November, confirming a preliminary flash estimate.

Readings above 50.0 indicate growth, while those below point to contraction.

The situation in the manufacturing sector is still pretty grim, said Hamburg Commercial Bank chief economist Cyrus de la Rubia.

Production is on a steep decline, and new orders keep slumping, making it clear that the industry won39;t be coming out of recession anytime soon, he said.

The intermediate goods category in particular saw its steepest decline in a year, and things are not looking much better for the investment goods sector, added de la Rubia.

Employment in the manufacturing sector decreased for the 18th consecutive month as firms adjusted to weaker demand, though the job loss rate slowed to its weakest since August.

Despite improvements in input delivery times and a continued decrease in input prices, manufacturers39; growth expectations remain muted due to political uncertainty and challenges in the construction and automotive sectors, according to the survey.

The trend of deteriorating business conditions might…