FX.co ★ German Services Sector Returns to Growth

In September 2025, the HCOB Germany Services PMI rose significantly to 52.5, up from 49.3 in August, surpassing market expectations of 49.5, according to preliminary data. This indicates a return to growth in the sector, now expanding at one of the fastest rates seen this year after enduring five months of predominantly decreasing activity. Despite this improvement, new orders still recorded a decline, albeit at a more moderate pace, and there was a slight uptick in job reductions within the sector. On the price side, input costs surged at the sharpest rate since April, driving service cost inflation beyond its long-term average. Companies successfully transferred some of these increased expenses to clients, resulting in prices charged rising at the most robust rate in six months. Nevertheless, there remains a cautionary atmosphere among firms, as their optimism for the coming months has been slightly tempered.