The German PMI data shows that the momentum of business activities in December has further weakened.

A survey released on Tuesday showed that growth in Germany's private sector slowed for the second consecutive month in December due to stagnation in new orders and a decline in manufacturing output. The preliminary German Composite Purchasing Managers' Index (PMI) fell from 52.4 in November to 51.5 in December, hitting a new low for four months. The pace of expansion in the service sector slowed to its lowest level since September, with the index dropping from 53.1 in November to 52.6. Meanwhile, the manufacturing PMI further fell into contraction territory, dropping from 48.2 last month to 47.7. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank, said, "Given the further decline in manufacturing, the situation is really bad." However, Rubia noted that manufacturing confidence has improved to its highest level in six months, which may reflect the government's initiation of some infrastructure projects, efforts to reduce bureaucracy, and hopes to strengthen national defense capabilities. He added, "It's only when these measures lead to an increase in orders that the industry can regain momentum."