FX.co ★ Germany Services Sector Stabilizes in July

In July 2025, the HCOB Germany Services PMI saw a stabilization at 50.1, rising from 49.7 in June and outpacing market predictions of 50, according to preliminary reports. This marks the PMI's highest point since March, driven by its first uptick in new business since August 2024, which indicates early improvements in market conditions. Despite this rise in optimism regarding the economic outlook, service providers remained cautious, continuing to decrease staffing levels and manage workforce capacity conservatively. Regarding inflation, there was a relief in input cost pressures, as operating expenses declined for the fifth time over the past six months. Additionally, the escalation in output prices decelerated, with July recording the smallest increase in over four years. Lastly, the confidence among service providers saw considerable growth, bolstered by signs of a revival in foundational demand.