Germany February final services PMI 50.9 vs 51.3 prelim

• Composite PMI 50.7 vs 51.1 prelim

A slight revision lower shows that Germany's services sector bounce wasn't as strong as anticipated but it at least secures another marginal growth in overall activity. That said, rising wages are still underpinning cost pressures and that is something to be wary about in the months ahead. S&P Global notes that:

"After contracting markedly in the final quarter of last year, the service sector has made an encouraging start to 2023, recording back-to-back marginal increases in activity. It remains to be seen whether this is enough to prevent a second consecutive quarterly fall in GDP – and therefore a technical recession – but it does show that the German economy is now on a more stable footing, which is a better situation than many were expecting not too long ago.

"A degree of confidence has returned to the economy due to the easing of energy-price and recession concerns, which has helped support demand. That said, whilst inflows of new business at services firms rose for the first time in nine months in February, the increase was only marginal, indicating that there's little growth momentum to speak of as yet.

"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 continues to run high, with a particular degree of stickiness in the service sector, where costs and selling prices are still rising at some of the quickest rates on record due in part to growing pressure from wage demands. However, there are signs that firms' willingness to expand employment is waning, as underscored by a slowdown in service-sector job creation to a near two-and-a-half year low in February, which should help contain wage-price spiral pressures somewhat."