FX.co ★ Germany’s Private Sector Downturn Eases as HCOB Composite PMI Edges Up in May

Germany’s private sector showed tentative signs of stabilisation in May, as the HCOB Germany Composite Purchasing Managers’ Index (PMI) inched up to 48.6 from 48.4 in April 2026.

Although the latest reading, released on 21 May 2026, remains below the 50.0 threshold that separates expansion from contraction, the small uptick suggests the pace of decline in German economic activity has slightly moderated. The composite PMI tracks output across both manufacturing and services, making it a key gauge of overall business conditions in Europe’s largest economy.

With May’s data marking a modest improvement on April’s level, markets and policymakers will be watching upcoming releases closely for signs of whether Germany can transition from a shallow downturn toward renewed growth in the coming months.