FX.co ★ Germany Services Activity Growth Slows

The HCOB Germany Services PMI decreased to 52.7 in November 2025 from the 29-month peak of 54.6 recorded in October, falling short of market expectations of 54, according to preliminary data. While this represents a decline, the index remains robust and aligns with its long-term average. The service sector witnessed continued growth in new business, driven by heightened demand and increased customer inquiries; however, the expansion pace has moderated. Employment persists, although with more caution. In contrast, backlogs of work shifted to contraction after experiencing an 18-month high in the previous month. From a pricing perspective, service firms reported continued rises in operating costs in November, primarily due to wage pressures. Conversely, the increase in prices charged has decelerated. Finally, service providers maintain an optimistic outlook for the coming year, though their confidence dipped to its lowest point since June.