FX.co ★ Germany Services PMI Revised Slightly Higher

The HCOB Germany Services PMI was adjusted upward slightly to 49 in April 2025 from an initial estimate of 48.8, but it declined from 50.9 in the month before. This marked the first instance of contraction since November and the most significant drop since February 2024, highlighting tepid demand and increased customer caution due to persistent economic and political uncertainties. New business has declined for the eighth month in a row, with companies pointing to difficult economic conditions and concerns related to tariffs as major contributors. Conversely, employment continued its upward trajectory in April, accelerating for the second consecutive month and achieving the fastest rate of job creation since May 2024. Regarding costs, input prices rose slightly from a five-month low in the previous month while remaining above their long-term average. In contrast, output prices declined for the second consecutive month, reaching their lowest level since October 2024, as companies reported limited pricing power due to intense competition for new business.