Finance
German business activity growth loses momentum in November, PMI shows
Published by Global Banking and Finance Review
Posted on November 21, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 21, 2025
2 min readLast updated: January 20, 2026
Germany's business growth slowed in November, with manufacturing contracting and services expanding slower than expected, according to PMI data.
By Miranda Murray
BERLIN (Reuters) -Germany's private sector growth has lost momentum in November as the manufacturing sector has unexpectedly contracted and the service sector has not expanded as fast as hoped, a survey showed on Friday.
The HCOB preliminary German flash composite Purchasing Managers' Index, compiled by S&P Global, slipped to 52.1 in November from October's 53.9, marking a two-month low.
November marks the sixth month in a row that the composite index, which tracks the services and manufacturing sectors that together account for more than two-thirds of the euro zone's largest economy, was above the 50 mark indicating growth.
The manufacturing PMI dipped further into contraction territory, falling to 48.4 in November from 49.6 in October, in contrast to analysts' forecasts for a slight rise to 49.8.
New orders in the manufacturing sector fell sharply, particularly in export sales, which saw their quickest decline since January. This downturn in demand has contributed to a renewed decline in backlogs of work and a modest acceleration in job losses across the sector.
Meanwhile, the services PMI dropped to 52.7 from 54.6, also a two-month low, and also below the forecast for a fall to 54.0.
"These figures are a major setback for Germany," said Cyrus de la Rubia, Hamburg Commercial Bank's chief economist.
The manufacturing PMI signals a slowdown in this part of the economy, while hopes that the rate of expansion in services would speed up have vanished into thin air, added de la Rubia.
"Overall, the German economy is limping towards marginal growth at best in the fourth quarter," said the economist.
The finance ministry said on Thursday that at best a moderate recovery can be expected by the end of the year.
Despite these challenges, manufacturers were optimistic about future production, buoyed by growth expectations in defence and civil engineering due to government investment.
(Reporting by Miranda Murray; Editing by Hugh Lawson)
Economic growth refers to an increase in the production of goods and services in an economy over a specific period, typically measured by GDP.
New orders in manufacturing refer to the total value of new purchase orders placed with manufacturers, indicating future production levels.
Job loss acceleration refers to a rapid increase in the number of jobs being lost in a sector, often signaling economic downturns.
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