German service sector expansion slows for a second consecutive month, yet stays robust in December

Germany's Service Sector Growth Persists, Though Expansion Slows

According to the latest HCOB PMI® survey, Germany's service industry maintained steady growth in December, but the rate of expansion continued to cool from the peak seen in October. The main factor behind this slowdown was a more gradual rise in new business. Employment levels saw a slight uptick for the third consecutive month, yet optimism among businesses slipped to its lowest point since April of the previous year.

On the pricing side, the survey revealed that both input costs and output prices climbed at a faster pace, with input costs experiencing their sharpest increase in ten months.