This slight expansion marked the first increase in five months, though underlying demand remained weak. New orders declined for the second consecutive month, with the reduced international market, particularly in Europe, contributing to the drop. Employment in the sector fell for the fourth month as firms cut capacity due to lower workloads, marking the longest streak of job cuts since early 2020. Operating expenses increased, primarily driven by higher wages, but overall cost inflation remained subdued compared to recent years.
Germany services PMI: slower price increases and modest growth outlook
Service providers raised prices slower, resulting in the second-lowest inflation rate since April 2021. While the business outlook improved slightly from September’s low, future growth expectations remained modest, according to historical standards.
