Germany Services PMI Rises to 29-Month High

The S&P Global Germany Services PMI climbed to a 7-month high of 52.9 in September 2026 from 49.7 in August, matching the preliminary estimate. The improvement was driven by stronger demand, with new business increasing for a third consecutive month and growing at its fastest pace since November 2025. Firms also reported greater investment spending and improved client demand, while new business from overseas rose for a second month, although the pace of growth moderated from August. Employment increased for a second consecutive month. Capacity pressures also became more visible, as outstanding work accumulated at the fastest rate since June 2022, despite the increase remaining modest. The recovery was accompanied by renewed inflationary pressure, with input costs rising at a pace only slightly below April’s recent peak. Higher costs contributed to a faster increase in prices charged by service providers.

The S&P Global Germany Services PMI rose to a 7-month high of 52.9 in September 2026 from 49.7 in August. The reading was also well above the market expectation of 50, signalling a renewed expansion in business activity after five consecutive months of contraction. New business accelerated at its fastest pace in almost a year, while outstanding business increased for a second consecutive month. The accumulation of unfinished orders and projects was the strongest since May 2022, indicating improving demand and pressure on capacity. Service providers also increased hiring during the month. On the price front, inflation accelerated as services firms raised prices more sharply. Despite the stronger activity and demand indicators, business sentiment weakened slightly in September, suggesting some caution about the outlook.

Germany’s S&P Global Flash Services PMI was revised higher to 49.7 in August 2026 from a preliminary estimate of 48.5, but remained slightly below July’s four-month high of 49.8. This marked the fifth consecutive month of contraction in the sector, though some signs of improvement emerged, with new orders rising for a second consecutive month, partly reflecting stronger demand from abroad. New export business rose for the first time since February and at the quickest pace since May 2023. This encouraged firms to take on additional staff for the first time in eight months, with the pace of job creation the fastest since October last year. On the cost front, input prices rose at the fastest rate in three months. Output charge inflation, meanwhile, eased slightly, although it remained comfortably above its long-run average. While sentiment fell slightly from July’s five-month high, service providers remained optimistic about the outlook for business activity in the year ahead.