The HCOB Germany Services PMI increased to 53.4 in February 2026 from 52.4 in January, reaching a four‑month high and surpassing market expectations of 52.3. This indicates a stronger pace of expansion in the services sector. Overall activity picked up even as growth in new business softened, while new export orders continued to rise. Backlogs of work declined only slightly, pointing to limited capacity pressures.
At the same time, employment fell at the fastest rate since June 2020, as firms accelerated staff reductions. These job cuts occurred against a backdrop of persistent cost pressures: input prices rose sharply and remained only marginally below January’s 12‑month peak, largely due to higher wages. Service providers once again increased their selling prices at a steep rate, though the pace of inflation eased slightly compared with the previous month.
Looking ahead, business expectations for the coming year were unchanged from January, suggesting sentiment is stable but cautious, even as current activity shows signs of improvement.
