German Private Sector Grows While Employment Falls at Fastest Pace in Over Fifteen Years
Germany private sector activity expanded at its fastest pace in three months in January. This growth was offset by the sharpest job cuts in over fifteen years.
洞察:
Business activity in Germany
DEgrew at its quickest rate in three months during January 2026, according to the latest survey data released on Friday, January 23, 2026. The HCOB preliminary German flash composite Purchasing Managers Index rose to 52.5 from 51.3 in December, indicating a notable expansion in the private sector. While the headline figures suggest a gathering momentum in the economy, the recovery is characterized by a significant structural divergence as companies implement aggressive efficiency measures.
The expansion was overshadowed by a severe deterioration in the labor market, with employment falling at the quickest rate since November 2009, excluding the distortions caused by the pandemic. This decline was particularly pronounced in the services sector, which saw its fastest decrease in staffing levels in over five and a half years. The reduction in headcounts occurred despite the rising business activity, reflecting a shift toward cost-cutting strategies within German firms rather than a demand-driven reduction.










