German Manufacturing PMI Rises to 49.2 in July, Services Back in Expansion

Germany’s Manufacturing and Services PMIs Show Mixed Signals in July

Germany’s preliminary Purchasing Managers’ Index (PMI) figures for July 2025 revealed a slowdown in the manufacturing downturn and a return to expansion in services, according to the HCOB Flash PMI survey released Thursday.

Manufacturing PMI Misses Estimates, But Climbs to 36-Month High

The HCOB Manufacturing PMI rose to 49.2, up from 49.0 in June. While this marks the highest reading in 36 months, it still came in slightly below market expectations of 49.4, suggesting ongoing—albeit easing—contraction in factory activity.

Services PMI Returns to Expansion Territory

Germany’s Services PMI climbed to 50.1 in July from 49.7, beating the consensus of 50.0. This marks the highest level in four months, signaling renewed growth momentum in the services sector.

German Composite Output Index Softens Slightly

The Composite Output Index, which combines manufacturing and services data, edged lower to 50.3 from 50.4 in June, also missing the expected reading of 50.7. This drop brings the index to a two-month low, highlighting lingering uncertainties in the broader economy.

EUR/USD Holds Lower Amid Mixed German Data

Despite the stronger services reading, EUR/USD remains pressured near 1.1770, as markets react cautiously to the mixed PMI outcomes and remain focused on upcoming US economic indicators and Federal Reserve policy signals.

Related Links on Tredu:

• Live EUR/USD Chart & Technical Analysis
• What PMI Data Means for Traders
• German Economy Tracker – Latest Updates