Germany’s services activity sees uptick in Oct. ’24

Germany’s services sector witnessed a modest growth in October, with the HCOB Services PMI rising to 51.6 from 50.6 in September—the first growth acceleration in five months.

However, underlying demand remained weak as new business declined for the second consecutive month, impacted by sluggish manufacturing, fewer public sector projects, and challenging financing conditions.

International demand also faltered, with export orders decreasing for a fourth month.

Firms cut jobs for the fourth month running amid low capacity pressures, marking the longest period of employment decline since 2009. Meanwhile, input costs edged up slightly due to wage increases, though output price inflation was near a three-and-a-half-year low.

Optimism for future growth improved from September’s 12-month low, yet confidence remained cautious amid uncertain economic conditions.

The HCOB Germany Composite PMI, which includes services and manufacturing, remained in contraction at 48.6, up from September’s 47.5, as weak manufacturing continued to weigh on overall output.

Attribution: HCOB PMI 

Subediting: Y.Yasser