Germany Services PMI Falls to 4-Month Low

2026-02-04 09:16 By Agna Gabriel 1 min. read

The HCOB Germany Services PMI fell to 52.4 in January from 52.7 in December, the lowest since September and below preliminary estimates of 53.3, but still signaling a fifth straight month of expansion.

Activity and new business continued to grow, although at a slower pace, with firms reporting new clients and generally stronger demand, including from abroad.

New export orders accelerated to the fastest growth since May 2023.

At the same time, backlogs of work fell for a third month, pointing to limited capacity pressures, and employment declined at the sharpest pace since mid 2020 as firms cut staff amid rising costs.

Input price inflation hit a 12-month high, driven mainly by higher labor and energy expenses, including a sharp rise in the minimum wage, prompting companies to raise selling prices at the fastest rate since last February.

Despite cost pressures, business confidence improved, with expectations for the year ahead rebounding to the highest since May 2024.



News Stream
Germany Services PMI Falls to 4-Month Low
The HCOB Germany Services PMI fell to 52.4 in January from 52.7 in December, the lowest since September and below preliminary estimates of 53.3, but still signaling a fifth straight month of expansion. Activity and new business continued to grow, although at a slower pace, with firms reporting new clients and generally stronger demand, including from abroad. New export orders accelerated to the fastest growth since May 2023. At the same time, backlogs of work fell for a third month, pointing to limited capacity pressures, and employment declined at the sharpest pace since mid 2020 as firms cut staff amid rising costs. Input price inflation hit a 12-month high, driven mainly by higher labor and energy expenses, including a sharp rise in the minimum wage, prompting companies to raise selling prices at the fastest rate since last February. Despite cost pressures, business confidence improved, with expectations for the year ahead rebounding to the highest since May 2024.
2026-02-04
Germany Services PMI Rises to 3-Month Low
The HCOB Germany Services PMI rose to 53.3 in January 2026, a three month high, up from 52.7 in December and above forecasts of 52.5, signalling stronger momentum in the service sector. Business activity expanded at its fastest pace since October, supported by a solid and accelerating rise in new work. Inflows of new business from abroad also increased, adding to overall demand. Firms reported improved confidence, with expectations for activity over the next 12 months becoming more optimistic. However, the labour market showed signs of deterioration, as service sector employment fell at the sharpest pace in more than five and a half years. At the same time, cost pressures intensified, with input price inflation rising to an 11 month high. Output price inflation also accelerated, pointing to more aggressive pricing behaviour among service providers.
2026-01-23
Germany Services PMI Revised Slightly Higher
The HCOB Germany Services PMI was revised slightly higher to 52.7 in December 2025 from a preliminary of 52.6, and compared to 53.1 in November, final figures showed. The reading showed the service sector growth eased for the second month running but remained solid. The loss of momentum largely reflected a slower increase in new business. Employment rose modestly and for the third straight month, but business expectations dropped to their lowest since April last year. On the price front, there was a faster increases in both input costs and output charges, with the former rising at the quickest rate for ten months.
2026-01-06