Finance
German business activity growth hits four-month high in February, PMI shows
Published by Global Banking & Finance Review®
Posted on February 20, 2026
2 min readLast updated: February 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on February 20, 2026
2 min readLast updated: February 20, 2026
Germany’s flash PMI rose to 53.1 in February, a four-month high, led by stronger services and a manufacturing return to growth at 50.7. The upside surprise suggests a Q1 2026 pickup despite ongoing job cuts.
By Maria Martinez
BERLIN, Feb 20 (Reuters) - Germany's private sector saw business activity growth accelerate to a four-month high in February, driven by improved performance in services and the first manufacturing expansion in over three-and-a-half years, a survey showed on Friday.
The HCOB Flash Germany Composite Purchasing Managers' Index compiled by S&P Global rose to 53.1 in February from 52.1 in January, indicating growth in activity as readings above 50 denote expansion.
Analysts polled by Reuters had forecast a reading of 52.3.
Growth continued to be led by the service sector, where the rate of growth of business activity quickened to a four-month high, with the index rising to 53.4 from 52.4 in the previous month. That was above the forecast of 52.3 of analysts polled by Reuters.
The manufacturing PMI, meanwhile, breached the 50.0 threshold for the first time since June 2022, registering 50.7 from 49.1 in January, and beating the Reuters forecast of 49.5.
"This confirms the tentative signs of an economic turnaround that were particularly evident in January," said Cyrus de la Rubia, chief economist at Hamburg Commercial Bank AG.
German industrial orders rose unexpectedly in December, posting their biggest increase in two years.
"(Gross domestic product) in Germany is likely to have grown visibly in the first quarter, unless there is a major slump in March, for which there is no indication in the data," de la Rubia said.
Despite the positive growth, job losses continued, albeit at a slower pace, with factories reducing employment at the second-softest rate in nearly two-and-a-half years.
(Reporting by Maria Martinez; Editing by Joe Bavier)
Germany’s February 2026 PMI shows private-sector growth at a four-month high, driven by stronger services and the first manufacturing expansion since June 2022.
The HCOB Flash Composite PMI rose to 53.1, services increased to 53.4, and manufacturing reached 50.7, moving back into expansion.
A PMI above 50 signals expanding business activity. Germany’s readings indicate improving momentum, suggesting an economic upturn in early 2026 despite lingering job cuts.
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