Service Sector Slowdown

The German services sector showed signs of slowing down in March, with the Services PMI Business Activity Index dropping to 50.9 from 51.1 in February, as reported by S&P Global and Hamburg Commercial Bank. This marks the lowest point in four months.

Composite PMI on the Rise

Contrastingly, Germany's Composite PMI Output Index saw an improvement, rising to 51.3 from 50.4 in February, achieving a 10-month high. Additionally, the rates of input cost and output price inflation have eased to five-month lows.

Expert Insight

Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, commented on the situation: "The service sector appears to be losing some momentum, though it wasn't exactly booming before. However, the current near-stagnation in business activity shouldn't be overinterpreted. History shows that the sector has experienced similar short-lived slowdowns, only to rebound shortly after."