Germany’s business activity fell to an 18-month low in June, driven by a sharper downturn in the services sector.
According to Jin10, the S&P Global Germany Composite Purchasing Managers’ Index (PMI) slipped to 48 in June from 48.8 in May, below the market expectation of 49.6.
Phil Smith, deputy director of economics at S&P Global Market Intelligence, said business activity declined for a third consecutive month and the pace of contraction was the fastest in the current cycle, increasing the likelihood that the economy returned to contraction in the second quarter.
Services remained the main drag. The services PMI fell to 46.8 in June from 48.1 in May, the lowest level since November 2022. Smith said the services sector continued to weigh on the economy, with declines in both business activity and new orders accelerating in June.
In manufacturing, the PMI edged down to 50.0 from 50.1. New orders fell for a fourth straight month, with the decline the steepest since December 2024.
Smith added that inflation pressures began to ease. Input cost inflation dropped to a four-month low, while the rate of output price inflation slowed to its lowest level in three months.
Germany’s June Composite PMI Falls to 18-Month Low as Services Slump Deepens
2026-06-23 15:41:21
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