Germany’s Services PMI fell to 48.5 in August 2026 from 49.8 in July, missing market expectations of 50.1, preliminary data showed. This marked the fifth consecutive month of contraction and the fastest pace since May. However, a second successive modest increase in new business and a renewed rise in employment suggest that activity could begin to improve in the coming months. A slower pace of inflation in services output prices could also support demand going forward.