FX.co ★ German Private Sector Growth Slows

In November 2025, the HCOB Flash Germany Composite PMI declined to 52.1 from 53.9 in October, which had marked the highest point since May 2023. This drop fell short of the predicted 53.7. The downturn in manufacturing reached a six-month low, decreasing to 48.4 from 49.6, while the growth within the services sector also decelerated, moving from 54.6 to 52.7. Companies reported slower growth in both business activity and new orders, with employment contracting more rapidly amid a renewed drop in work backlogs. Moreover, the pace of output price inflation slightly eased from October’s eight-month high; however, overall cost inflation remained unchanged from the previous month. Business expectations for the upcoming year were largely stable, as increased optimism among manufacturers was counterbalanced by a less positive outlook in the service sector. "These figures present a significant obstacle for Germany. Currently, the German economy is inching towards, at most, marginal growth in the fourth quarter," commented Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank.