FX.co ★ German Private Sector Activity Growth Slows

The S&P Global Flash Germany Composite PMI slipped to 52.8 in October 2026 from 53.8 in September, coming in below expectations of 53.3. The latest reading indicates that private‑sector activity continued to grow, though at a slower pace, reflecting a loss of momentum in both the services sector (51.7 vs. 52.9) and manufacturing output (55.1 vs. 56).

New business remained on an upward trajectory but expanded at the slowest rate in three months. While services firms reported stronger growth expectations, this was counterbalanced by a marked deterioration in confidence among manufacturers, where input cost inflation accelerated to its highest level since May.

Nonetheless, amid reports of competitive pressures and lower fuel prices, overall output price inflation eased, with the rate of increase in charges for goods and services falling to a seven‑month low.

Labour market trends were mixed. Job creation in the services sector remained marginal and unchanged from the previous month. In manufacturing, employment levels were close to stabilising, with only a slight decline—the smallest reduction in more than three years.