German Private Sector Growth Slows

2025-11-21 08:45 By Joana Taborda 1 min. read

The HCOB Flash Germany Composite PMI fell to 52.1 in November 2025 from 53.9 in October which was the highest since May 2023, and below forecasts of 53.7.

The manufacturing contraction deepened to a six-month low (48.4 vs 49.6), while growth in the services sector also slowed (52.7 vs 54.6).

Companies recorded slower increases in both business activity and new orders and employment fell at a quicker rate amid a renewed decline in backlogs of work.

Also, the rate of output price inflation tick down from October’s eight-month high.

Overall cost inflation was unchanged from the month before, however.

Firms’ expectations for the year ahead were broadly unchanged, with stronger optimism among manufacturers being largely offset by weaker sentiment in the service sector.

"These figures are a major setback for Germany.

Overall, the German economy is limping towards marginal growth at best in the fourth quarter", Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said.



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