The final HCOB Germany Services PMI Business Activity Index rose to 53.5 in February from 52.4 in January, marking the highest reading since October. The increase was largely attributed to increased demand and increased export business. However, employment fell for the second consecutive month, with the rate of job losses the fastest since June 2020 and the COVID-19 pandemic. Cost pressures remained high, but companies continued to pass on some costs to customers at a slower rate. The German composite PMI also rose to 54.2 from 52., indicating growth across the private sector.