The HCOB Germany Services PMI was revised lower to 50.9 in March 2026 from a preliminary reading of 51.2, down from 53.5 in February. This marked the weakest growth in services activity since a contraction in August 2025. New orders fell, ending a five-month sequence of growth, as firms reported heightened uncertainty among customers and a squeeze on spending due to rising fuel prices amid the Middle East war. This reflected a modest decrease in orders from abroad, following three consecutive months of growth. Employment also fell for the third month in a row. Input price inflation surged to its highest level since February 2024, moving further above its long-run average, while prices charged rose at the slowest pace recorded so far in 2026, though still above the historical trend. Moreover, business confidence dropped to its lowest level year-to-date, falling below its long-run average amid concerns over elevated energy prices, supply chain disruptions, and geopolitical uncertainty.