Published by Global Banking & Finance Review®
Posted on April 3, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleGermany's service sector maintained growth in March with a PMI of 50.9, despite declining new business. Optimism remains for future expansion.
BERLIN (Reuters) - Germany's service sector maintained modest growth in March, extending its expansion streak to four months, though the pace slowed as new business continued to decline, S&P Global reported on Thursday.
The final HCOB Purchasing Managers' Index (PMI) for the services sector fell to 50.9 in March from 51.1 in February, staying slightly above the 50.0 threshold that indicates growth.
"The service sector seems to be losing momentum, though it was not exactly racing ahead before," said Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank AG.
Firms faced challenges with new business inflows dropping at the fastest rate in six months, driven by heightened uncertainty and slow decision-making among customers.
The decline was partly attributed to reduced foreign orders, exacerbated by tough market conditions, competition and a stronger euro.
Employment continued to rise, with the pace of job creation slightly accelerating from the previous month, the survey showed.
Looking ahead, firms expressed increased optimism, buoyed by expectations of fiscal expansion in Germany and hopes for growth driven by new products, services, and technological change.
"The fact that hiring is still happening and confidence in future business activity has even ticked up suggests we are not looking at a long-term slump," de la Rubia said.
(Reporting by Maria Martinez; Editing by Hugh Lawson)
The final HCOB Purchasing Managers' Index (PMI) for the services sector fell to 50.9 in March from 51.1 in February.
Firms faced challenges with new business inflows dropping at the fastest rate in six months, driven by heightened uncertainty and slow decision-making among customers.
Yes, employment continued to rise, with the pace of job creation slightly accelerating from the previous month.
Firms expressed increased optimism, buoyed by expectations of fiscal expansion and hopes for growth driven by new products, services, and technological change.
The service sector seems to be losing momentum, although it was not exactly racing ahead before, indicating a cautious outlook.
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