The S&P Global Flash Germany Composite PMI rose to 51.2 in July 2026 from 49.5 in June, surpassing market expectations of 49.8. This marked the highest reading in four months and signaled a return to growth in private sector activity after three consecutive months of contraction. The improvement was driven by a notable rebound in manufacturing output and an almost flat performance in the services sector.
New export orders increased again, and firms were slightly more optimistic about the year-ahead outlook for activity, which in turn was reflected in a slower pace of job losses. On the price front, input costs rose at a marginally faster rate, largely due to mounting cost pressures on services providers. However, the average prices charged for goods and services increased at the slowest pace in four months.
Despite the improvement in July, the path toward a durable recovery remains highly uncertain, not least due to escalating hostilities in the Middle East, which have renewed upward pressure on global energy prices.
