Germany Composite PMI Revised Up

The S&P Global Germany Composite PMI was revised higher to 53.4 in October 2026 from a preliminary of 52.8, and down slightly from September's 11-month high of 53.8. The reading showed that growth in Germany’s private sector slowed slightly but remained robust, as activity in the services sector eased (52.5 vs. 52.9), while manufacturing growth accelerated (54.2 vs. 53.9). Growth in new business slowed sharply, with a renewed drop in demand in the service sector coinciding with a weaker (though still solid) rise in factory new orders. Employment meanwhile fell for the first time in three months, alongside a slight dip in firms' expectations towards future output. As for prices, there were slowdowns in the rates of input cost and output price inflation, with the latter easing to its lowest since March.

The S&P Global Flash Germany Composite PMI fell to 52.8 in October 2026 from 53.8 in September, below forecasts of 53.3. The reading pointed to sustained, albeit slower, growth in private-sector business activity, amid a slowdown in both the services sector (51.7 vs. 52.9) and manufacturing output (55.1 vs. 56). New business continued to expand, but did so at the weakest rate for three months. Stronger growth expectations among services firms were offset by a notable reduction in confidence in the manufacturing sector, where input cost inflation surged to its highest since May. Amid reports of competitive pressures and discounted fuel prices, however, the overall rate of increase in prices charged for goods and services ticked down to a seven-month low. In addition, the pace of job creation at services firms was unchanged and only marginal. Workforce numbers in the manufacturing sector came close to stabilising, recording only a marginal fall that was the weakest for over three years.

The S&P Global Germany Composite PMI rose to 53.8 in September 2026 from 51.8 in August, matching preliminary estimates and signaling the strongest expansion in almost a year. Growth was broad-based and led by manufacturing, which also drove increases in new business and export sales. Meanwhile, the services sector returned to expansion, with the Business Activity Index rising to 52.9 from 49.7 in August, marking its highest reading since just before the Middle East conflict began in February. Business expectations also strengthened, supported by improved sentiment among goods producers. Employment increased for a second consecutive month, albeit marginally, as continued gains in services staffing were partly offset by slower factory job cuts. Meanwhile, price pressures intensified, with both input costs and output prices rising at their fastest rates in four months.