The HCOB Germany Composite PMI was revised slightly lower to 48.5 in May 2025 from a preliminary of 48.6, and confirming the private sector in Germany fell back into contraction after four months of expansion. Business activity declined across the service sector for the second month in a row and at the quickest rate for two-and-a-half years (47.1 vs 49). Also, the manufacturing sector remained weak (48.3 vs 48.4). New orders decreased in both sectors and posted the steepest overall drop so far this year. Manufacturers saw export sales rise for a second straight month, but this was offset by weaker international demand across the service sector. Despite a broad-based improvement in business expectations, employment fell at the fastest rate for three months. Declining backlogs of work continued to highlight a lack of pressure on staffing capacity. On the price front, data showed the slowest rise in average charges for goods and services for seven months.