December's headline seasonally adjusted IHS Markit Germany Services PMI Business Activity Index came in at a 27-month low of 51.8, down from 53.3 in November (and below the earlier 'flash' estimate of 52.5), to signal a third successive month of slower growth in the sector.

Commenting on the PMI data, Phil Smith, Principal Economist at IHS Markit said: "In Germany, when the manufacturing sector sneezes, there's a good chance the rest of the economy will catch a cold, and that seems to be what's happened in the service sector in the final quarter of 2018. "The PMI showed service sector business activity growth slowing throughout Q4, down to its lowest in over two years in December, with the month's final data coming in slightly weaker than the flash estimates to suggest that the slowdown continued right up to the end of the year. "Alongside the lingering uncertainties towards Brexit and trade wars, worries about a general slowdown in the economy have helped undermine business confidence across the service sector, with expectations towards the outlook sliding to their lowest for over three years at the close of play in 2018”.