FX.co ★ Rebound in Germany’s Private Sector Confirmed: PMI

The HCOB Germany Composite PMI returned to a growth position, reaching 50.4 in June 2025, after experiencing a contraction in May at 48.5. This indicates a modest expansion in private sector activity, as increased manufacturing output was somewhat negated by a decline in the services sector. Notably, new orders saw a slight increase for the first time in over a year, driven by heightened demand for manufactured products. Additionally, business confidence strengthened across both sectors as firms expressed a more optimistic outlook for the coming year. Despite this, employment figures continued to decline, maintaining a downward trend observed since June of the previous year. The survey also indicated a general reduction in work backlogs, suggesting minimal pressure on operating capacities. In terms of pricing, recent data revealed a continued easing of inflationary pressures, with both input costs and average prices for goods and services rising at their most sluggish pace since October of last year.