Germany December final services PMI 49.2 vs 49.0 prelim

• Composite PMI 49.0 vs 48.9 prelim

Just a slight revision higher, as German services activity comes up to a five-month high. That said, it still points towards a contraction even as price pressures continue to retreat from recent highs. Business optimism remains subdued and the outlook remains dim as there are plenty of headwinds still in force at the moment. S&P Global notes that:

"Germany's service sector remained in contraction territory in December, with activity under pressure from a combination of high inflation, tightening financial conditions and continued economic uncertainty. Encouragingly, however, the downturn has lost momentum, which together with a slower decline in manufacturing production at the end of the year adds to the hopes that any recession will be milder than initially feared.

"Business confidence has recovered somewhat after having hit a near two-and-a-half-year low back in September, helped in part by the announcement of gas and power price caps, but concerns about the outlook, including those around energy, haven't gone away entirely and growth expectations remain muted.

"December saw the survey's measures of input cost and output charge inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term maintain a steady retreat from the record highs seen earlier in the year, in a further sign that underlying price pressures have passed their peak. However, the services price gauges remain among the highest on record, unlike in manufacturing where they have fallen more markedly due in part to a greater exposure to softening material costs."