FX.co ★ Germany Services PMI Revised Lower

The HCOB Germany Services PMI for March 2026 was revised down to 50.9 from a preliminary estimate of 51.2, easing from 53.5 in February. This signaled the weakest expansion in service sector activity since the contraction recorded in August 2025.

New business declined, bringing an end to a five-month run of growth. Surveyed firms cited increased customer uncertainty and pressure on spending, linked in particular to rising fuel costs amid the war in the Middle East. This was reflected in a slight decline in new export business, following three consecutive months of expansion.

Employment fell for the third consecutive month.

Input cost inflation accelerated to its highest level since February 2024, moving further above its long-run average. By contrast, prices charged by service providers rose at the slowest rate recorded so far in 2026, although the pace of increase remained above its historical trend.

Business sentiment weakened to its lowest level of the year to date, slipping below its long-run average, as firms expressed concern over persistently high energy prices, ongoing supply chain disruptions, and elevated geopolitical uncertainty.