Germany's manufacturing sector downturn eased in November.

HCOB final Purchasing Managers' Index (PMI) for manufacturing rose to 42.6 from 40.8 in October.

The sector is still in recession, but the rate of output decline slowed.

Businesses reported the slowest declines in output and new orders in six months.

Expectations for future activity improved but remained pessimistic.

The German constitutional court's decision on debt brake compliance had an impact.

The government froze new spending commitments after the court blocked plans.

The court decision affected the re-purposing of unused pandemic funds towards green projects.

The industry might be at the forefront of this judicial budget storm.

Employment showed a faster rate of decline, with factory workforce numbers dropping significantly.

The decline in employment is the most extensive since October 2020.

The manufacturing sector still faces challenges, but there are signs of improvement.