Germany's HCOB Flash Germany Composite PMI Output Index rose to 50.1 in January from December's 48.0, a seven-month high, according to the S&P Global and Hamburg Commercial Bank (HCOB) flash report on Friday. The services sector led the recovery, with its Business Activity Index improving to 52.5, the highest level in six months.
The manufacturing sector also showed signs of recovery. The Manufacturing PMI Output Index increased to 45.2, an eight-month high, though it remained in contraction territory. Services companies saw a slight rise in employment for the first time in seven months, reflecting growing optimism, while manufacturers continued to cut jobs amid declining new orders.
"Companies in the services sector have increased their activity for the second month in row after a short-term blip in November. Manufacturing output is shrinking at the slowest rate since mid-2024, and the new order situation has eased a bit too. This shift towards optimism is highlighted by a much better outlook on future activity, which goes hand in hand with the German DAX index outperforming the US-based S&P 500 in January," Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented.
