German Services Sector Enters Contraction

The German services sector has taken a downturn in April, with the Services PMI Business Activity Index dropping to 49.0 from 50.9 in March. This decline, reported by S&P Global and Hamburg Commercial Bank, signifies the first dip below the 50.0 threshold since November, reaching a 14-month low.

Composite PMI Shows Slight Growth

Despite the services sector's contraction, Germany's Composite PMI Output Index slightly increased to 50.1 from 51.3 in March, marking a 4-month high. Analysts attribute this mixed performance to weaker demand and ongoing economic and political uncertainties.

Expert Insights on the Economic Slowdown

"The German service sector has hit the brakes," noted Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank. He highlighted that while the composite PMI avoided recession territory, thanks to manufacturing gains, the outlook remains uncertain.