FX.co ★ Germany Services PMI Expands for Third Consecutive Month

The HCOB Germany Services PMI decreased to 53.1 in November 2025, down from October’s 29-month peak of 54.6, yet surpassing preliminary market predictions of 52.7. This reading represents the third consecutive month of expansion, primarily propelled by robust customer demand. New business persisted in its growth for the second consecutive month, although the rate of growth has moderated. Work backlogs declined in November, following an increase for the first time in 18 months the previous month. Employment continued to rise, albeit at a modest pace, with a noticeable deceleration in hiring. On the inflation front, the growth of input costs eased to a four-month low, with wages remaining the primary cost driver. Meanwhile, output price increases slowed significantly, reflecting their weakest rise since July 2025. Looking forward, companies' growth expectations have softened for the second straight month, influenced by political uncertainties and rising costs. Despite these challenges, the service sector remains robust and is anticipated to continue bolstering Germany’s economic growth in the near term.