FX.co ★ Germany Services PMI Rises to 3-Month Low

In January 2026, the HCOB Germany Services PMI climbed to a three-month high of 53.3, rising from December's 52.7 and exceeding the anticipated 52.5, indicating increasing momentum in the service sector. Business activity grew at its quickest rate since October, propelled by a robust and accelerating surge in new work. The influx of new international business also contributed to the overall demand. Companies expressed improved confidence, with a more optimistic outlook for activity over the next year. However, the labor market exhibited signs of weakening, as service sector employment declined at the most rapid rate seen in over five and a half years. Simultaneously, cost pressures heightened, with input price inflation reaching an 11-month peak. Output price inflation also accelerated, suggesting more aggressive pricing strategies among service providers.