S&P Global final Germany services PMI rose to 48.6 in June, up from the flash
46.8, but still below 50 and marking a third consecutive month of contraction.
Prices rises and falling market confidence weighed on demand. New business
declined for a fourth month and fell faster than in May, with firms citing a
weak domestic economy, tighter financing and low domestic confidence; overseas
new orders also dropped markedly. Backlogs fell at the fastest pace since August
last year, signaling low capacity pressure and dampening near-term hiring
prospects. Employment fell for a sixth month in June, but the decline was small
and the mildest in the current downcycle. S&P Global said the sector has been
under pressure since the outbreak of the Middle East war.
