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Economic Buzz: German private-sector activity contracts for a second month
21-May-2026 15:32
German private-sector activity contracted for a second consecutive month in May, raising concerns that Europe's largest economy is being hit by the spillover effects of the Iran war. The S&P Global Composite Purchasing Managers' Index (PMI) for Germany rose slightly to 48.6 in May, up from 48.4 in April, but remained below the 50-point threshold that separates expansion from contraction. Both the manufacturing and services sectors remained in contraction territory, as weak demand and elevated inflation continued to weigh on business activity.

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