FX.co ★ Germany Services Sector Nears Stabilization

In June 2025, the HCOB Germany Services PMI experienced an uptick, reaching 49.7 compared to May's figure of 47.1. This revision also improves upon the initial estimate of 49.4, suggesting a trend towards stabilization in the services sector. While new business witnessed its tenth consecutive month of decline, the rate of decrease has lessened, marking the slowest diminishment during this period. Employment figures saw an uptick for the sixth consecutive month, with a marginal acceleration in job creation, albeit at a modest pace. Concurrently, work backlogs decreased for the fourteenth month in a row, though the rate of reduction eased for the third time in four months, marking the weakest drop since May of the previous year. On the pricing front, inflation pressures continued to alleviate, with both input and output prices experiencing more tempered increases. Lastly, business confidence has seen improvement for the second successive month after a significant fall in April, despite still trailing its long-term average.