FX.co ★ German Services Sector Growth Surprises on the Upside

The HCOB Germany Services PMI experienced an upward shift to 54.5 in October 2025, compared to 51.5 in the previous month, significantly surpassing market forecasts of 51, based on the preliminary estimate. This indicates a second consecutive month of growth and represents the highest level since May 2023, fueled by an increase in new business volumes. As a result, companies have renewed their hiring efforts following two months of workforce reductions. In terms of pricing, cost pressures have intensified for the third consecutive month. Businesses managed to partially offset these cost increases by elevating their selling prices, which rose at a faster pace than in September. Finally, the future outlook has adopted a more cautious stance due to internal economic challenges and escalating geopolitical tensions.