BERLIN, May 4 (Reuters) - German manufacturing contracted for the ninth month running in April, though the pace of the downturn eased to its slowest since last November, a survey showed on Monday.
The headline figure in the Purchasing Managers' Index (PMI) for manufacturing in Europe's largest economy registered 35.4, remaining well below the 50 level that separates contraction from expansion but rising from the March reading of 32.4.
April's final reading was slightly higher than a flash estimate of 35.0 released on April 23.
"April's survey provides hope that the German manufacturing downturn has passed its nadir, as the PMI moved further above January's record low," said Tim Moore, economist at Markit Economics, which compiles the data.
"However, output still fell at a rate unprecedented prior to the fourth quarter of 2008, prompting firms to trim employment and inventories to the greatest extent in the survey history," he added.
The output sub-index edged up to 34.9 from 32.5 in March, while inventories of finished goods fell for the fifth straight month and at a series record pace as manufacturers continued to run down stock levels because of lower demand.
New orders declined for the tenth successive month but at a much slower pace than in March, with the sub-index rising to 37.0 from 28.9 -- a series record month-on-month rise.
The survey's improved tone chimed with other recent sentiment indicators on the German economy, Europe's largest.
The Ifo institute's closely watched business climate index improved in April to its best level in five months, and the ZEW think tank's investor sentiment gauge rose this month to its highest level in almost two years. (Editing by Andy Bruce)