Finance
German service sector growth slows in November, PMI shows
Published by Global Banking and Finance Review
Posted on December 3, 2025
2 min readLast updated: January 20, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on December 3, 2025
2 min readLast updated: January 20, 2026
Germany's service sector growth slowed in November with a PMI of 53.1, down from October's 54.6, due to softer new business and employment increases.
By Miranda Murray
BERLIN, Dec 3 (Reuters) - Germany's services sector grew for a third consecutive month in November, albeit at a slower pace than October's two-year-plus high, due to softer increases in new business and employment, according to a survey published on Wednesday.
The final HCOB Germany Services PMI fell to 53.1 in November from a 29-month high of 54.6 in October, but still slightly above a preliminary November reading of 52.7.
A reading below the 50.0 mark indicates a drop in overall activity, while anything above that mark signals business expansion.
"The service sector is likely to keep Germany's growth just above zero in the fourth quarter," said Hamburg Commercial Bank chief economist Cyrus de la Rubia.
He cited households' cautious spending behaviour and deepening recession in manufacturing as being behind the slowdown.
The survey highlighted a softer increase in new business and employment, with business expectations slipping to a five-month low. Despite this, demand remained robust, with many firms citing stronger customer demand as a key driver of activity.
"The continued growth in new business suggests that business activity in the service sector will also grow in the last month of the year," said de la Rubia.
"For the coming year, the expansionary fiscal policy, which is also likely to be accompanied by higher investment volumes, should have positive spillover effects on the service sector."
The slowdown in services was also reflected in the HCOB final composite PMI that tracks services as well as manufacturing, which eased to a slightly upwardly revised 52.4 in November from 53.9 the month before.
(Reporting by Miranda Murray; Editing by Joe Bavier)
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 business growth refers to the increase in the number of new businesses or the expansion of existing businesses, contributing to overall economic activity.
Employment opportunities refer to the availability of jobs in the market, which can be influenced by economic conditions and business growth.
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