The HCOB Germany Services PMI was revised slightly higher to 53.5 in February 2026, a four-month peak, from a preliminary estimate of 53.4 and up from 52.4 in January, final data showed. The expansion was driven by firmer demand, with firms reporting the acquisition of new clients and the securing of large projects. New business rose for the fifth consecutive month, while export orders recorded their strongest increase since May 2023.
Backlogs of work edged up, marking only the third increase in more than two and a half years and underlining the improvement in demand. However, employment fell for the second month in a row, with the pace of job shedding the fastest since June 2020. Cost pressures remained elevated, largely reflecting higher wages as well as energy, transport, and supplier costs, although input price inflation eased slightly from January’s recent peak.
Firms continued to raise output prices, but at a more moderate rate. Business confidence weakened somewhat, yet overall optimism remained above its long-run average, supported by rising order volumes, expectations of a broader economic recovery, and growing adoption of AI.
