The HCOB Flash Germany Composite PMI rose to 53.1 in February 2026 from 52.1 in January, beating expectations of 52.3. This signalled the fastest expansion in German business activity in four months, with both manufacturing (52.3 vs 51.4) and services (53.4 vs 52.4) advancing to their highest levels in the same period.
The upturn was again underpinned by stronger demand for both goods and services, as new business inflows increased for the fourth time in five months. Job losses remained marked overall, but the rate of decline eased slightly, reflecting stabilising backlogs of work and a marginal improvement in firms’ expectations for activity over the coming 12 months.
On the price front, the latest data pointed to the sharpest rise in input costs in three years. This continued to feed through into a solid increase in prices charged for goods and services, although the pace of output price inflation slowed somewhat, edging down from January’s 23‑month high.
