FX.co ★ Private Sector Growth in Germany Highest since 2024

The HCOB Flash Germany Composite PMI saw an unexpected rise to 52.4 in September 2025, marking its highest level since May 2024. This compares to 50.5 in August and surpasses projections of 50.6. The data reflects an increase in business activity within Germany's private sector, primarily driven by a recovery in the services sector, which improved to 52.5 from 49.3. Meanwhile, the downturn in manufacturing continued to deepen, dropping to 48.5 from 49.8. Output witnessed the most substantial growth in 16 months; nonetheless, there were indications of weak demand, evidenced by a widespread decline in new work inflows. Employment fell across both the services and manufacturing sectors as business confidence for the upcoming year weakened. On the pricing side, inflationary pressures saw a modest uptick, with the rate of increase in input costs and output charges rising to their fastest levels in six and five months, respectively.