FX.co ★ Germany’s Private Sector Edges Back to Growth as HCOB Composite PMI Rises Above 50

Germany’s private sector returned to expansion territory in July, as the HCOB Germany Composite PMI climbed to 51.2, up from 49.5 in June 2026. The latest reading, released on 24 July 2026, marks a shift from contraction to modest growth, crossing the critical 50-point threshold that separates expansion from decline.

The improvement in the July 2026 data suggests a broad-based pickup in German business activity compared to the previous month, when the index still signaled a slight downturn. While the pace of expansion remains measured, the move above 50 points indicates that overall output in the combined manufacturing and services sectors has started to grow again.

The updated HCOB Composite PMI figure will be closely watched by investors and policymakers as a timely barometer of the German economy’s near-term momentum, following a period of weaker readings earlier in the year.