FX.co ★ Germany Composite PMI Revised Slightly Down

The HCOB Germany Composite PMI experienced a slight downward revision to 48.5 in May 2025, from an initial estimate of 48.6, indicating that Germany's private sector slipped back into contraction after enjoying four months of growth. Business activity in the service sector declined for the second consecutive month, descending at the most rapid pace in two and a half years (falling from 49 to 47.1). Additionally, the manufacturing sector continued to struggle, with a minor decline from 48.4 to 48.3. Both sectors reported a decrease in new orders, marking the steepest overall decline recorded this year. Although the manufacturing sector witnessed an increase in export sales for the second month running, weakened international demand in the service sector counteracted this gain. Despite a general improvement in business outlooks, employment levels dropped at the sharpest rate observed in three months, as reducing work backlogs signaled minimal pressure on staffing capacities. On the pricing front, data revealed the slowest increase in average charges for goods and services in seven months.