FX.co ★ Germany Services Activity Falls to 3-Month Low

Germany’s Services PMI declined to 48.5 in August 2026 from 49.8 in July, falling short of market expectations of 50.1, according to preliminary data. This was the fifth consecutive month of contraction and the sharpest downturn since May. Even so, a second straight modest increase in new business and a renewed rise in employment indicate that activity may start to improve in the coming months. In addition, a slower pace of inflation in services output prices could help underpin demand going forward.