FX.co ★ Germany’s Composite PMI Slips in December

In December 2025, the HCOB Germany Composite PMI decreased to 51.3, down from 52.4 in November, and slightly below the preliminary forecast of 51.5. This indicates a second month of slowing growth in Germany, Europe's largest economy. The services sector continued to grow, albeit at a reduced rate, while the manufacturing industry experienced a more pronounced contraction. There was a decline in new business, primarily due to a significant reduction in manufacturing orders. Export sales also decreased for the fifth consecutive month, impacting overall activity. Employment levels continued to decline, and there was a slight decrease in work backlogs, indicating minimal pressure on capacity. Input costs accelerated at the fastest rate in almost a year, although prices for goods and services remained steady compared to the previous month. Business sentiment also deteriorated, with expectations falling to their lowest point in eight months.