Germany Composite PMI Revised Slightly Up

The HCOB Germany Composite PMI was revised slightly higher to 53.2 in February 2026 from a preliminary of 53.1, and above 52.1 in January. It is the highest reading in four months, amid faster increases in activity in both the manufacturing and service sectors. There was stronger demand for goods and services, including from abroad, as export sales rose simultaneously in both monitored sectors for the first time since February 2022. Conversely, February saw another broad-based decrease in employment, although the overall rate of decline eased due to a slowdown in factory job cuts. Backlogs meanwhile rose, albeit marginally, for the first time in four months. Turning to prices, a faster rate of increase in input costs contrasted with a slowdown in output price inflation, albeit with the latter remaining above its long-run average. Business expectations were little-changed, holding close to January's 20-month high.

The HCOB Flash Germany Composite PMI increased to 53.1 in February 2026 from 52.1 in January, well above forecasts of 52.3. The reading showed that business activity growth in Germany accelerated to a four-month high, with both manufacturing (52.3 vs 51.4) and services (53.4 vs 52.4) also climbing to their strongest levels in four months. The upturn continued to be supported by stronger demand for goods and services, with inflows of new work rising for the fourth time in the past five months. The pace of job losses meanwhile remained solid, although it slowed slightly amid a stabilisation in backlogs of work and a fractional uptick in firms’ expectations for activity over the next 12 months. As for prices, the latest data indicated the steepest increase in input costs for three years which translated into another solid, albeit slightly slower, rise in average prices charged for goods and services, with the rate of inflation edging down from January’s 23-month high.

The HCOB Germany Composite PMI increased to 52.1 in January 2026 from 51.3 in December, but remained slightly below a preliminary estimate of 52.5, as a rebound in manufacturing production offset slower growth in services activity. Total new business expanded for the third time in four months, supported by a broad stabilization in export sales. Workforce numbers continued to decline, alongside further reductions in backlogs across both manufacturing and services. On the price front, average input costs rose at the fastest pace in nearly three years, while output charge inflation jumped to a 23-month high, driven mainly by higher service-sector prices as factory gate charges declined further. Business sentiment climbed to its highest level since May 2024.