Service Sector Slowdown

The German services sector has shown signs of slowing down in March, with the Services PMI Business Activity Index dropping to 50.9 from 51.1 in February, reaching a four-month low, as reported by S&P Global and Hamburg Commercial Bank.

Composite PMI on the Rise

Despite the slowdown in the service sector, Germany's Composite PMI Output Index has seen an improvement, rising to 51.3 from 50.4 in February, marking 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, stating, "The service sector seems to be losing momentum, though it was not exactly racing ahead before. Still, the near-stagnation observed in business activity should not be over-interpreted. Over the past couple of years, there have been several short phases where service providers dialled things back, only to bounce back into growth mode a few months later."