Germany Services PMI Rises to 4-Month Low

2026-02-20 08:43 By Agna Gabriel 1 min. read

The HCOB Germany Services PMI rose to 53.4 in February 2026 from 52.4 in January, a four month high and above forecasts of 52.3, signaling a stronger pace of expansion in the services sector.

Activity improved despite slower growth in new business, although new export orders continued to increase.

Outstanding work fell only marginally, suggesting limited pressure on capacity.

However, employment declined at the fastest pace since June 2020 as firms accelerated staff cutbacks.

Job losses came alongside sustained cost pressures, with input prices rising sharply and only slightly below January’s 12 month high, driven largely by higher wages.

Service providers again raised selling prices at a steep pace, though slightly softer than the previous month.

Meanwhile, business expectations for the year ahead remained unchanged from January, indicating stable but cautious sentiment despite improving activity.



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