The HCOB Germany Composite PMI fell to 51.3 in December 2025, down from 52.4 in November and slightly below the preliminary estimate of 51.5, signaling a second consecutive month of slowing growth in Europe’s largest economy. The services sector continued to expand, albeit at a slower pace, while the manufacturing sector deepened its contraction. New business declined again, driven largely by a sharp drop in manufacturing orders. Export sales weighed on activity, falling for the fifth consecutive month. Employment continued to contract, and backlogs of work edged down modestly, suggesting limited pressure on capacity. Input costs rose at their fastest pace in nearly a year, while average prices charged for goods and services remained unchanged from the previous month. Finally, business sentiment weakened further, with expectations slipping to an eight-month low.