FX.co ★ Germany Services Sector Growth Slows for 2nd Month

In December 2025, the HCOB Germany Services PMI registered a decline to 52.6 from November's figure of 53.1, falling short of market predictions of 53, according to preliminary estimates. This marked the second straight month where sector activity has decelerated, reaching its slowest pace since September. While service providers experienced a modest rise in new orders, it was the weakest within the ongoing three-month expansion period due to restrained demand conditions. However, employment growth exhibited signs of strengthening. On the pricing front, both input costs and output charges experienced accelerated increases. Business confidence declined for the third consecutive month to its lowest point since April, influenced by growing concerns regarding the economic outlook, geopolitical tensions, and the competitiveness of German companies.