Germany’s composite PMI dropped to 48.0 in June, signaling deeper economic contraction amid weak services activity.
Germany’s June flash PMI data missed expectations, with the composite index falling to 48.0 from 48.5 in May. The decline was driven by a sharper contraction in services, which dropped to 46.8, while manufacturing held steady at 50.0, just above the expansion threshold.
Analysts had anticipated a slight improvement, with consensus forecasts at 49.6 for the composite and 49.0 for services. The prior month’s readings were 48.5 and 48.1, respectively. Inflationary pressures eased, with input costs rising at the slowest pace since before the Middle East conflict.
The data raises concerns about a second-quarter economic contraction, as business activity declined for a third consecutive month. Employment trends remain weak, adding further pressure on domestic demand.