Financial News: German Private Sector Slips Into Contraction

German Private Sector Slips Into Contraction

04/23/2026 - 06:32:00 (RTTNews)

(RTTNews) - Germany's private sector contracted for the first time in almost a year in April, reflecting the effects of the war in the Middle East, flash survey data from S&P Global revealed Thursday.

The composite output index dropped to a 16-month low of 48.3 in April from 51.9 in the previous month.

The index fell to sub-50 contraction zone for the first time since May last year. Moreover, the score was the lowest since December 2024.

The downturn was driven by a marked reduction in service sector business activity, which registered its worst slump in almost three-and-a-half years. The services Purchasing Managers' Index declined to 46.9 from 50.9 a month ago.

At the same time, manufacturing activity growth dropped moderated in April. The corresponding index posted 51.2 compared to 52.2 in the previous month.

"The recovery in the German economy has been stopped in its tracks by the war in the Middle East," S&P Global Market Intelligence Economics Associate Director Phil Smith said.

"A ten-month sequence of growth came to an end in April as business activity contracted against a backdrop of heightened uncertainty and sharply rising prices," Smith added.

For comments and feedback: contact editorial@rttnews.com

Market News provided by RTTNews

RECENT INTERNATIONAL FINANCIAL NEWS

Slovakia Q1 GDP Growth Eases To 0.9% (24 min(s), 33 sec(s) ago)
(RTTNews) - The Slovakian economy grew at a slightly slower pace in the first quarter, flash data ...Full Story»

Czech Inflation Confirmed At 2.5% (01 hr(s), 18 min(s), 33 sec(s) ago)
(RTTNews) - The Czech Republic's consumer price inflation accelerated as initially estimated i ...Full Story»

Swedish Consumer Prices Fall As Estimated In April (01 hr(s), 44 min(s), 33 sec(s) ago)
(RTTNews) - Sweden's consumer prices decreased for the first time in six years as initially es ...Full Story»

French Inflation Accelerates On Energy Prices (02 hr(s), 11 min(s), 33 sec(s) ago)
(RTTNews) - France's consumer price inflation rose to its highest level since mid-2024 in Apri ...Full Story»

Finland Inflation Rises To 23-month High (02 hr(s), 10 min(s), 33 sec(s) ago)
(RTTNews) - Finland's consumer price inflation accelerated in April to the highest level in ne ...Full Story»

French Jobless Rate Highest In 5 Years (02 hr(s), 49 min(s), 33 sec(s) ago)
(RTTNews) - France's unemployment rate rose to the highest level in five years in the first qu ...Full Story»

Japan Eco Watchers Index Falls To 50-month Low (02 hr(s), 55 min(s), 33 sec(s) ago)
(RTTNews) - A measure of the public assessment of the current situation of the Japanese economy ...Full Story»

Germany Wholesale Prices Rise Most Since 2023 (03 hr(s), 24 min(s), 33 sec(s) ago)
(RTTNews) - Germany's wholesale prices grew at the fastest pace since early 2023 in April as t ...Full Story»