Germany Services Sector Remains in Contraction

2026-09-03 08:06 By Judith Sib-at 1 min. read

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.



News Stream
Germany Services Sector Remains in Contraction
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.
2026-09-03
Germany Services Activity Falls to 3-Month Low
Germany's S&P Global Flash Services PMI fell to 48.5 in August 2026 from 49.8 in July, missing market expectations of 50.1, preliminary data showed. The reading marked the fifth consecutive month of contraction and the fastest pace since May, pointing to continued weakness in the services sector. The decline came even as new orders increased modestly for a second consecutive month and firms raised staffing levels for the first time in eight months. Meanwhile, backlogs of work declined at a slower pace. On the price front, the rate of inflation in services output prices moderated, which could support demand in the months ahead by easing cost pressures on customers. Business confidence was unchanged from July, indicating that firms remained optimistic about the outlook for activity over the coming year.
2026-08-21
German Service Sector Nears Stabilization
Germany’s Services PMI rose to 49.8 in July 2026 from 48.6 in June, revised higher from the preliminary estimate of 49.6, indicating the sector moved closer to stabilization as activity contracted at its slowest pace since the current downturn began in April. New business expanded marginally for the first time in five months, supported by higher customer numbers, although foreign demand continued to decline. Output also remained constrained by elevated prices and geopolitical uncertainty, while employment fell for a seventh consecutive month, albeit at the slowest pace of the current sequence. Backlogs of work also declined further but at the weakest rate since March. Meanwhile, both input cost and output price inflation accelerated, reflecting higher fuel costs following the expiry of the temporary fuel tax cut and persistent wage pressures. Business confidence improved further from April's recent low as firms grew more optimistic about activity over the coming year.
2026-08-05