The HCOB Germany Services PMI declined to 53.1 in November 2025 from October’s 29-month high of 54.6, marking the third consecutive month of expansion and exceeding preliminary market estimates of 52.7. Although business activity and new orders continued to grow, the pace of expansion slowed, and employment increased only modestly. Backlogs of work contracted slightly after a brief rise in October. Inflationary pressures eased, with input costs and output prices rising at slower rates, mainly due to lower wage-driven cost pressures. Looking ahead, firms’ growth expectations softened for a second consecutive month, weighed down by political uncertainties and high costs, though the sector remains resilient and is expected to support Germany’s economic growth in the near term.