The HCOB Flash Germany Composite PMI unexpectedly jumped to 52.4 in September 2025, the highest since May 2024, compared to 50.5 in August and beating forecasts of 50.6. The reading pointed to an uptick in business activity growth across the German private sector, led by a rebound in services (52.5 vs 49.3) while the contraction in manufacturing worsened (48.5 vs 49.8). Output rose to the greatest extent for 16 months, but there were, however, signs of fragile demand, with the latest data indicating a broad-based decrease in inflows of new work. Employment also fell in both sectors, amid a general weakening of business expectations for the year ahead. On the price front, there was a slight pick-up in inflationary pressures, with the rates of increase in input costs and output charges accelerating to their fastest for six and five months, respectively.