Germany’s S&P Global Flash Services PMI was revised higher to 49.7 in August 2026 from a preliminary estimate of 48.5, but remained slightly below 49.8 in July and marked the fifth consecutive month of contraction. Still, there were signs of improvement in the sector, with new business continuing to increase, partly reflecting stronger demand from abroad. New export business rose for the first time since February and at the fastest pace since May 2023. This encouraged firms to take on additional staff for the first time in eight months. On the cost front, input prices rose at the fastest rate in three months. Output charge inflation, meanwhile, eased slightly, although it remained comfortably above its long-run average. Finally, German service providers remained optimistic about the outlook for business activity over the next 12 months.