S&P Global Market Intelligence Germany composite PMI fell to 48.0 in June from
48.8 in May, below the 49.6 market forecast. Phil Smith, associate director of
economics at S&P Global Market Intelligence, said business activity has now
contracted for three consecutive months at the fastest pace of the cycle,
raising the risk of the economy re-entering contraction in Q2. Services led the
decline: the services PMI dropped to 46.8 from 48.1, its weakest since November
2022, with activity and new orders both declining faster in June. Manufacturing
slipped to 50.0 from 50.1; new orders contracted for a fourth month at the
quickest pace since December 2024. Input-cost inflation eased to a four-month
low and firms’ output-price inflation slowed to a three-month low.
