The HCOB Germany Composite PMI was revised slightly higher to 50.6 in July 2025 from a preliminary of 50.3, the highest in four months, compared to 50.4 in June. The reading pointed to a faster increase in private sector activity, led by a rebound in services (50.6 vs 49.7) while the manufacturing sector remained in contraction (49.1 vs 49). A renewed upturn in service sector new business offset a slower expansion in manufacturing new orders. Meanwhile, total export sales were up for the second month running, albeit increasing more slowly than in June. Employment fell only slightly and at the slowest rate in three months. Backlogs showed their softest decline for 15 months and inflationary pressures moderated, principally reflecting weaker cost and output prices increases in the service sector. Lastly, there was a services-led rise in business expectations. The degree of optimism was at a six-month high, despite manufacturing seeing the lowest confidence since April.