The HCOB Germany Services PMI rose to 52.5 in September 2025, from 49.3 in August and beating market forecasts of 49.5, according to the flash estimate. The sector is now back in growth territory, expanding at the joint-fastest pace this year after five months of mostly declining activity. There were, however, signs of fragile demand, as new orders continued to decline, albeit at a slower pace. Job shedding in the sector also quickened slightly. On the price front, input costs increased at the fastest pace since April, pushing services cost inflation further above the long-term average. Firms were able to pass on some of these higher expenses to clients, with prices charged rising at the strongest rate in six months. Still, companies were not very confident about the future, as they scaled back their optimism a notch.