Germany's private sector growth stalls in December, as new orders remain stagnant. The latest 'flash' HCOB PMI® survey reveals a slowdown in business activity growth for the second consecutive month, following October's peak. This slowdown is attributed to weak underlying demand, with new business inflows stagnating in the final month of 2025. Firms' growth expectations for the year ahead have also plummeted to their lowest in eight months. Despite the expansion slowdown, inflationary pressures are rising, with operating expenses and service prices increasing. This data contrasts with the UK's private sector, which showed a rebound in business activity growth in December, supported by a surge in new work since October 2024. Meanwhile, the Bank of Japan is set to raise interest rates to a three-decade high, indicating a continued focus on borrowing cost hikes. These contrasting trends highlight the varying economic conditions across Europe and the potential impact on global markets.
