Berlin (Reuters) – The German service sector has recorded its fastest growth for eight months in September, despite a drop in new orders and a significant job reduction, according to a survey published on Friday.

The final PMI HCOB index of services increased to 51.5 in September, slightly below a preliminary estimate of 52.5, but still in expansion territory after a figure of 49.3 in August.

A value greater than 50.0 indicates an expansion, while a value lower than this figure indicates a drop in overall activity.

The resumption of expansion in services, as well as the stronger growth in manufacturing production, have contributed to carrying the final PMI Hcob composite index, which follows the two sectors, at 52.0 a higher of 16 months.

If the figures may seem encouraging at first glance, certain negative aspects indicate that the production of the private sector will not increase in a sustainable manner in the coming months, unless demand is improving, said Cyrus de la Rubia, chief economist of the commercial bank hamburg.

“In the manufacturing sector, new orders dropped in September, ending a three -month growth series. And in the service sector, new cases have again retreated,” said Cyrus de la Rubia.

Employment in the service sector fell for the second consecutive month in September, recording its greatest decrease in more than five years due to the decrease in orders for orders and the persistent weakness of demand.

This consecutive decline does not necessarily announce a phase of job cuts, but it deserves to be monitored due to growing discussions on the question of whether artificial intelligence leads to large -scale layoffs, Cyrus of Rubia said.

However, despite these challenges, service providers have remained optimistic about the prospects for the coming year, the forecasts of companies reaching their highest level since May 2024.

(Miranda Murray, Mara Vîlcu for the , edited by Augustin Turpin)

Copyright © 2025 Thomson Reuters