The German service industry showed signs of stabilizing at the end of the second quarter.

A survey released on Thursday showed signs of stabilization in the German service sector at the end of the second quarter, with only a slight decrease in commercial activity in June. The final value of the HCOB service sector PMI rose to 49.7 in June, higher than the two-and-a-half-year low of 47.1 in May, but slightly lower than the initial value of 49.4 in June. Cyrus Delarobia, chief economist at Hamburg Commercial Bank, said, "Service providers have been struggling for the past three months." He added that activity in the industry has been more unstable since the 2019 pandemic. The survey showed that the decline in new business has slowed, while backlogs of work have been declining for the 14th consecutive month. Employment numbers have marginally increased for the sixth consecutive month as businesses seek to expand their capacity. From a positive perspective, this can be interpreted as service providers having confidence that they will soon receive more orders.