German Business Activity Unexpectedly Shrinks as Services Plunge

German private-sector activity unexpectedly contracted as the Iran war triggered the biggest plunge in the services sector in more than three years.

S&P Global’s Composite Purchasing Managers’ Index fell to 48.3 in April from 51.9 the previous month — sinking below the 50 threshold separating expansion from contraction for the first time since May 2025. Analysts had expected a smaller decline, to 51.2.