05.11.202509:03:19UTC+00Germany Services PMI Rises to 29-Month High

In October 2025, the HCOB Germany Services PMI climbed to 54.6, marking an increase from 51.5 in September and reaching its highest level since May 2023. This figure also surpassed preliminary market expectations of 54.5. The services sector in Germany experienced a robust start to the fourth quarter, largely fueled by a boost in domestic demand and an uptick in new business activities. Employment saw an increase for the first time in three months, recovering from significant declines observed in September, as companies adapted to heightened workloads and a growing backlog—both rising for the first time since mid-2022. Although export demand remained subdued, it showed signs of stabilization, noting the smallest decline since mid-2024. Inflationary pressures resurfaced, driven by increased wages that elevated input costs to their highest level since April. Consequently, service providers implemented the fastest price hikes in eight months. While optimism saw a minor decline, the overall sentiment remained positive, bolstered by anticipated improvements in economic conditions, the development of new products, and investments in technology.