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In December 2025, the HCOB Germany Composite PMI decreased to 51.3, down from 52.4 in November, and slightly below the preliminary forecast of 51.5. This indicates a second month of slowing growth in Germany, Europe's largest economy. The services sector continued to grow, albeit at a reduced rate, while the manufacturing industry experienced a more pronounced contraction. There was a decline in new business, primarily due to a significant reduction in manufacturing orders. Export sales also decreased for the fifth consecutive month, impacting overall activity. Employment levels continued to decline, and there was a slight decrease in work backlogs, indicating minimal pressure on capacity. Input costs accelerated at the fastest rate in almost a year, although prices for goods and services remained steady compared to the previous month. Business sentiment also deteriorated, with expectations falling to their lowest point in eight months.
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