Germany Services PMI Falls to 4-Month Low

EthereumCraftsman · 2026-02-04T09:25:02+00:00

The HCOB Germany Services PMI declined to 52.4 in January, indicating slower growth but still above expansion thresholds. While new business and export orders increased, staffing levels decreased significantly due to rising costs, leading to higher selling prices and improved business confidence.

EthereumCraftsman

2026-02-04 09:25:02

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The HCOB Germany Services PMI fell to 52.4 in January from 52.7 in December, the lowest since September and below forecasts 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.

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