Key facts
- The services index held above the 50 level that separates growth from contraction, marking a second straight month of expansion.
- New export business fell for the first time in three months, at the quickest pace since June, S&P Global said.
- Services employment fell for the first time since July, and the pace of job losses was the quickest since April.
- Input cost and output charge inflation remained elevated by historical standards even as cost pressures eased, S&P Global said.
- Phil Smith of S&P Global Market Intelligence said the service sector recovery hit a speed bump in October as demand softened.
Germany's services sector expanded for a second straight month in October, but at a slower pace, as new business fell and weaker demand weighed on hiring, a business survey showed on November 4.
The S&P Global Germany Services PMI Business Activity Index fell to 52.5 from 52.9 in September, holding above the 50 mark that separates growth from contraction. The S&P Global Germany Composite PMI Output Index, which combines services and manufacturing data, edged down to 53.4 from September's 11-month high of 53.8.
Total new business in services ticked down after rising throughout the third quarter, with firms citing delayed customer decisions and pressure on household finances. New export business fell for the first time in three months, at the quickest pace since June.
Employment fell for the first time since July, though only modestly, and the pace of job losses was the quickest since April. Cost pressures eased for the first time in four months after fuel discounts were reinstated, while firms raised prices at a slower pace than in September. Both input cost and output charge inflation remained elevated by historical standards, the survey compiler said.
Business expectations for the year ahead improved to their highest since February, with 34% of firms expecting activity to rise. Phil Smith, economics associate director at S&P Global Market Intelligence, said: "The recovery in the service sector hit a speed bump in October, with the latest PMI survey signalling a loss of momentum as firms recorded a slight softening of demand."