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Economic Buzz: German business activity growth ticks up to four-month high in February
20-Feb-2026 14:08
Business activity in Germany's private sector grew at its fastest pace in four months in February, according to the latest flash survey from Hamburg Commercial Bank (HCOB).

The HCOB Flash Germany Composite PMI Output Index rose to 53.1 from 52.1 in January, the highest level since October. Growth was driven mainly by services, where activity accelerated to a four-month high. Manufacturing also improved, with output expanding at the quickest pace since October. The headline manufacturing PMI moved back above the 50.0 threshold for the first time in more than three-and-a-half years, signalling a return to overall growth.

New business increased for the fourth time in five months, supported by stronger domestic and foreign demand. Export orders rose modestly, marking the first increase in seven months.

Employment continued to decline, although the pace of job losses eased slightly overall. Manufacturing job cuts slowed, while services saw a sharper reduction in staffing.

Cost pressures intensified, with input prices rising at the steepest rate in three years. Output price inflation remained strong but edged down from January's near two-year high.

Business confidence improved slightly, reaching its highest level since May 2024.

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