German Services Sector Contracts in April

The German services sector unexpectedly slipped back into contraction in April, with the Services PMI Business Activity Index dropping to 49.0 from 50.9 in March, as reported by S&P Global and Hamburg Commercial Bank. This marks the first dip below the critical 50.0 threshold since November, reaching a 14-month low.

Composite PMI Output Index Also Declines

Germany's Composite PMI Output Index also saw a decrease, standing at 50.1 in April, down from 51.3 in March, despite marking a 4-month high. Analysts attribute this decline to weaker demand and heightened economic and political uncertainties.

Expert Insights on the Slowdown

"The German service sector has hit the brakes," remarked Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank. "Business activity dipped slightly in April, ending a four-month growth streak. While the composite PMI avoided recession territory, thanks to manufacturing gains, the outlook remains cautiously pessimistic."