German Flash Pmi Data Surprises: Manufacturing Rebounds, Services Stumble

Inflation Pressure Eases Across Sectors Input and output prices in the Service Economy Rose at the Slowest Pace in Five Months, While Price Trends in Manufacting Were Largely Flat, Following MONTS OF DOCLINE. The EASING IN INFLATION SUPPORTS ECB WILL REMAIN PATient on Policy Tightling, Particularly with Service Activity Cooling.

Business Confidentnce Recovers Despite Mixed Sectoral Signals Both Manufacturars and Service Providers Reported Improved Business Expectations for The Year Ahead, Bolstered By Optimism Over -Increasted Public Infrastructure Investment. However, Services Firms Remain Less Upbeat Compared to Industrial Producers, Who See Potential Upside from Government Stimulus.

Market Outlook: Bullish on German Manufacturing, CAUTIUS ON SERVICES With the Flash manufacturing pmi surprising to the upside and signling improving momentum, the short-ertm Outlook is Bullish for Germany’s Industrial Sector. However, The Services PMI Miss and Ongoing Weakness in New Business Suggest Traders Should Remain Neutral to Cautious on Broader Europe Demand. Close Monitoring of US Tariff Developments and German Fiscal Policy Execution Will Be Critical For Validating Further Upside in Q2.