FX.co ★ Germany Composite PMI Rises in January

The HCOB Germany Composite PMI experienced an uptick, reaching 52.1 in January 2026, compared to 51.3 in December. However, it fell slightly short of the initial estimate of 52.5. This improvement was largely due to a revival in manufacturing production, which managed to counterbalance the deceleration in the growth of services activities. The overall new business volume grew for the third instance in the past four months, largely due to a general stabilization in export sales. Despite this, the workforce figures continued to shrink, accompanied by further declines in backlogs within both the manufacturing and services sectors. On the pricing front, average input costs surged at the fastest rate observed in nearly three years. Meanwhile, inflation in output charges soared to its highest in 23 months, primarily propelled by increased prices in the service sector, despite continued declines in factory gate charges. Business optimism reached its peak since May 2024.