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The S&P Global Flash Germany Composite PMI declined to 48.0 in June 2026 from 48.8 in May, falling short of market expectations of 49.9. This reading indicates a third consecutive month of contraction in private-sector activity and marks the sharpest downturn since December 2024. The weakness was concentrated in the services sector, where the PMI dropped to 46.8 from 48.1, reaching its lowest level in 43 months, while manufacturing output grew at a slightly faster pace (50.8 vs. 50.4). The overall softness reflected weak underlying demand, with new business inflows falling for a fourth straight month and at the fastest rate since December 2024 amid worsening economic conditions and heightened market uncertainty. Private-sector employment also continued to decline. At the same time, inflationary pressures eased further, as both input costs and output prices rose at their slowest rates in four and three months, respectively. Business expectations deteriorated as well.
