FX.co ★ Germany Services Sector Contracts at Softer Pace

Germany’s S&P Global Flash Services PMI rose to 49.6 in July 2026 from 48.6 in June, reaching a four‑month high and surpassing market expectations of 49, according to preliminary estimates. While the index remained just below the 50 neutral mark, it indicated a much slower rate of contraction, with business activity close to stabilizing after four straight months of decline. The downturn in new business also softened, pointing to improving demand conditions across the services sector. Business confidence strengthened and moved back above its long‑run average, signalling increased optimism about the outlook. On the price front, input cost inflation picked up slightly, with firms reporting higher fuel prices alongside persistent wage pressures. Services companies also raised their selling prices at a somewhat faster pace, indicating that cost pressures continued to be passed on to customers despite still subdued activity.