German Private Sector Loses Momentum

(RTTNews) - Germany's private sector growth slowed for the second straight month in December, the flash purchasing managers' survey from S&P Global showed on Tuesday.

The flash HCOB composite output index registered a four-month low of 51.5 in December, down from 52.4 in November.

At the broad level, growth in the service sector eased to its weakest since September. The indicator dropped to 52.6 in December from 53.1 in the previous month. In manufacturing, production levels returned to contraction territory, to end to a nine-month sequence of growth. The manufacturing PMI hit a 10-month low of 47.7, down from 48.2 in November.

The survey showed that growth softened further from October's recent high due to sluggishness in underlying demand, with inflows of new business stagnating in the final month of 2025.

Meanwhile, firms' expectations for growth in the year ahead plunged to their lowest in eight months.

Inflationary pressures picked up in December despite the slowdown in the pace of expansion. Alongside faster increases in both operating expenses and prices charged in the service sector, manufacturers logged a first rise in input costs in nearly three years amid signs of growing supply-chain pressures.