German Private Sector Activity Shrinks for 2nd Month

2026-05-21 07:44 By Joana Taborda 1 min. read

The S&P Global Germany Composite PMI edged up to 48.6 in May 2026 from 48.4 in April, compared to forecasts of 48.4, preliminary estimates showed.

The reading pointed to a second straight month of contraction in private sector activity, amid a backdrop of weakening demand and elevated inflationary pressures.

The downturn continued to be led by the service sector (47.8 vs 46.9), although there was a stalling of the manufacturing sector (49.9 vs 51.4) as factory orders fell back into decline.

Input cost inflation rose to the quickest for three and-a-half years, mainly due to commodities and transportation cost, reflecting the disruption from the effective closure of the Strait of Hormuz.

Meanwhile, output inflation slowed, suggesting businesses shouldering a greater proportion of the burden and hinting at an increased squeeze on company margins.

Also, the pace of job losses gathered pace, despite business expectations showing a partial rebound from April's low.



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German Private Sector Activity Shrinks for 2nd Month
The S&P Global Germany Composite PMI edged up to 48.6 in May 2026 from 48.4 in April, compared to forecasts of 48.4, preliminary estimates showed. The reading pointed to a second straight month of contraction in private sector activity, amid a backdrop of weakening demand and elevated inflationary pressures. The downturn continued to be led by the service sector (47.8 vs 46.9), although there was a stalling of the manufacturing sector (49.9 vs 51.4) as factory orders fell back into decline. Input cost inflation rose to the quickest for three and-a-half years, mainly due to commodities and transportation cost, reflecting the disruption from the effective closure of the Strait of Hormuz. Meanwhile, output inflation slowed, suggesting businesses shouldering a greater proportion of the burden and hinting at an increased squeeze on company margins. Also, the pace of job losses gathered pace, despite business expectations showing a partial rebound from April's low.
2026-05-21
Germany Private Sector Activity Contracts in April
The S&P Global Germany Composite PMI was revised slightly higher to 48.4 in April 2026 from a preliminary estimate of 48.3, down from 51.9 in March, signalling a contraction in private sector activity for the first time since May 2025. The downturn was driven by the services sector, which recorded its sharpest contraction in nearly three and a half years (46.9 vs 50.9 in March), reflecting a further squeeze on demand linked to the war in the Middle East. Meanwhile, manufacturing continued to expand, albeit at a slower pace (51.4 vs 52.2), partly supported by stockbuilding. New business declined at the fastest rate since May last year, weighed down by weaker demand for services. Employment and business expectations also deteriorated across both sectors, led by manufacturing, while input costs and output prices rose at broadly faster rates.
2026-05-06
Germany’s Private Sector Contracts in April
Germany’s S&P Global Composite PMI fell to 48.3 in April 2026, down sharply from 51.9 in March and below market expectations of 51.1, according to preliminary data. This marks the first contraction in the country’s private sector since May 2025, and the steepest decline since December 2024, as the ongoing war involving Iran disrupted Germany’s fragile economic rebound, dampening demand and pushing prices higher. The services sector drove the downturn, experiencing its sharpest decline in activity since late 2022, while manufacturing output growth also slowed.
2026-04-23