German Private Sector Growth Highest Since 2023
The HCOB Flash Germany Composite PMI increased to 53.8 in October 2025 from 52 in September, beating forecasts of 51.6. The reading pointed to the strongest growth in private sector activity since May 2023, mostly due to a solid increase in services business activity (54.5, also the highest for almost two-and-a-half years vs 51.5) while the manufacturing sector approached stagnation (49.6 vs 49.5). The upturn in output was supported by a renewed expansion in intakes of new work, while employment came close to stabilizing as backlogs showed their first rise since mid-2022. With growth strengthening and demand improving, inflationary pressures rise. There were faster increases in both input costs and average charges for goods and services, with the respective rates of inflation reaching the quickest for eight months. Meanwhile, there was a broad-based easing of business expectations for the year ahead, signaling the economic situation remains fragile.(asd)
Source: Trading Economics
