The HCOB Germany Composite PMI was confirmed at 50.4 in June 2025, marking a return to growth in private sector activity after a contraction in May (48.5). However, the expansion was only limited as an increase in manufacturing production was partly offset by a decline in services activity. Meanwhile, new orders rose for the first time in over a year, albeit marginally, buoyed by stronger demand for manufactured goods. Furthermore, firms grew increasingly optimistic about the year-ahead outlook, with confidence improving in both monitored sectors. Still, employment continued falling, in line with the trend seen in each month since June last year. A broad-based decrease in backlogs of work pointed to a lack of pressure on operating capacity. On the price front, latest data showed inflationary pressures continuing to ease. Both input costs and average prices charged for goods and services rose at the slowest rate since October last year.
