FX.co ★ Germany Composite PMI at 3-Month High

The HCOB Flash Germany Composite PMI increased to 52.5 in January 2026, reaching its highest point in three months, up from December's 51.3 and exceeding forecasts of 51.6. This indicates a strengthening in private-sector activity, largely propelled by accelerated growth in the services sector, which climbed to 53.3 from 52.7. Additionally, manufacturing production returned to an expansionary phase, rising to 50.5 from 48.3. This improvement is supported by a renewed upsurge in new order inflows, coupled with a significant boost in business confidence to its strongest level since February 2022. Nonetheless, labor market conditions worsened, with employment declining at its quickest rate since mid-2020 across both the services and manufacturing sectors. Moreover, companies encountered a sharp and accelerating rise in input costs, resulting in the most intense inflationary pressure in almost three years. This contributed to a pronounced increase in output prices, which escalated at their briskest rate since May 2023.