(ANSA) - BELGRADE, JUN 1 - German manufacturing stalled as uncertainty and rising costs from the Middle East conflict dampened demand. The PMI dropped to a four-month low of 50.1 in May. "With margins under pressure, something had to give, and that'something' was employment, with manufacturing job losses accelerating at their fastest rate since early 2025," said Phil Smith, Economics Associate Director at S&P Global Market Intelligence. "Business expectations have stabilised, recovering partially from their April low, possibly due to hopes for a deal to end the Middle East conflict. However, even if a peace agreement is reached and the Strait of Hormuz reopens, the system will continue to experience disruptions and strong inflationary pressures for some time." (ANSA).