03.07.202607:55:00UTC+00Germany’s Private Sector Nears Growth as June HCOB Composite PMI Rises to 49.5

Germany’s private sector edged closer to expansion in June, as the HCOB Germany Composite PMI advanced to 49.5, up from 48.8 previously. The latest reading, updated on 03 July 2026, signals a continued but moderating contraction, keeping the index just below the key 50-point threshold that separates growth from decline.

The move from 48.8 to 49.5 suggests that the downturn in German business activity is easing, with overall conditions improving compared to the prior month. While the composite indicator still points to a slight weakening in output, the upward shift indicates that the worst of the slowdown may be stabilizing.

With the June 2026 figure still under 50, Germany’s economy has not yet returned to broad-based expansion, but the data highlight a gradual firming in sentiment and activity across the private sector as the second half of the year approaches.