The HCOB Germany Services PMI fell to 52.7 in November 2025 from a 29-month high of 54.6 in October, below market forecasts of 54, preliminary data showed. Despite the decline, the reading remained solid overall and was in line with the long-run average. New business in the services sector continued to grow, supported by higher demand and increased customer enquiries, but the rate of expansion softened. Hiring continues, albeit more cautiously. Meanwhile, backlogs of work returned to contraction after rising for the first time in 18 months in the previous month. On the price front, services firms continued to report rising operating expenses in November, which they attributed in large part to wage pressures. On the other hand, the rise in prices charged slowed. Lastly, service providers remained optimistic about activity over the next year, though the degree of confidence fell to its weakest level since June.