2025-11-05 08:55:00
- Prior 51.5
- Final Composite PMI 53.9 vs 53.8 prelim
- Prior 52.0
Key findings:
- Employment increases for first time in three months
Comment:
Commenting on the PMI data, Nils Müller, Junior Economist at Hamburg Commercial Bank, said:
“Germany’s services sector started the fourth quarter with renewed momentum, as the HCOB Services PMI surged to 54.6
in October, marking its highest reading in nearly two-and-a-half years. The acceleration in business activity was
accompanied by a solid rise in new work, which recorded only its second increase in over a year.
“Employment rebounded after two months of decline, with service providers returning to hiring mode amid rising backlogs of
work – the first such increase in 18 months. The accumulation of outstanding business, albeit modest, signals growing
capacity pressures, which surveyed firms attributed to stronger demand, supply shortages, and a lack of qualified staff.
However, optimism about future activity ticked down slightly from September’s recent high, suggesting some caution
remains despite the overall upbeat tone.
“Inflationary pressures intensified, with input costs rising at the fastest pace since April, which was largely driven by wage
increases, as firms reported. Output prices followed suit, climbing at the quickest rate in eight months. These developments
point to a sector regaining pricing strength amid improving demand conditions.
“Taken together, the October PMI data suggest that Germany’s services economy is regaining its footing after a subdued
period. The combination of rising demand, renewed hiring, and stronger pricing power bodes well for the broader economy,
even as firms remain watchful of external risks and cost pressures.”
