FX.co ★ Germany’s Private Sector Activity Grows Marginally in July

In July 2025, the HCOB Germany Composite PMI registered a slight decrease to 50.3 from June's 50.4, underperforming the anticipated market figure of 50.7, as per preliminary data. This figure suggests a minimal expansion in the private sector activity, where a decline in manufacturing output—now at its lowest in five months—was counterbalanced by a renewed growth in the services sector, following a three-month contraction. There was a marginal increase in new business volumes; however, employment levels continued to decline, and the backlog of work diminished further. Regarding inflation, input cost pressures eased for the sixth consecutive month, hitting their lowest since October 2024. Similarly, output price inflation decelerated, with companies raising prices for goods and services at a more restrained pace. Significantly, business confidence surged to its highest point since May 2024, largely due to a notable improvement in sentiment among services firms.