Germany's Private Sector Activity on the Rise

The latest preliminary report from S&P Global and Hamburg Commercial Bank (HCOB) reveals a notable uptick in Germany's private sector activity for March. The Composite PMI Output Index climbed to 50.9, marking the highest level since May 2024, albeit slightly below what analysts had anticipated.

Service Sector Eases as Manufacturing Gains Momentum

While the Services PMI Business Activity Index dipped to a 4-month low of 50.2, the Manufacturing PMI surged to 48.3, its highest in 31 months, signaling a robust recovery in the sector. This shift suggests a changing dynamic in Germany's economic landscape.

Expert Insights: A Surprising Turnaround

"What a pleasant surprise – manufacturers have ramped up production for the first time in nearly two years... This could be linked to the import boom from the US, as companies rush to avoid impending tariffs," commented HCBO Chief Economist Cyrus de la Rubia, highlighting the unexpected strength in manufacturing.