FX.co ★ Germany Services PMI Revised Higher

In March 2025, the HCOB Germany Services PMI was adjusted upwards to 50.9 from an initial estimate of 50.4, marking the sector's fourth month of consecutive growth. Nonetheless, the pace of expansion decelerated as new business fell at the sharpest rate in half a year, influenced by subdued demand, increased uncertainty, and intensified international competition. Companies significantly reduced their backlogs, a move bolstered by moderate job creation. Optimism within the sector grew, fueled by anticipated fiscal expansion, the introduction of new products, and technological advancements. Both input cost and output price inflation decreased to their lowest levels since October, though they still exceeded pre-pandemic levels.