BERLIN, Aug 5 (Reuters) - Germany's service sector contracted only marginally in July as demand picked up slightly and new business rose for the first ‌time in five months, a business survey showed on Wednesday. The final HCOB Germany ‌services Purchasing Managers' Index, compiled by S&P Global, rose to 49.8 in July from 48.6 the month ​before, coming in slightly above an initial reading of 49.6. A reading below 50.0 indicates contraction, and the closer it comes to that figure, the slower the rate of contraction. "Business conditions have steadied across the service sector, with not only business activity coming close to stabilising ‌in July, but employment too," ⁠said Phil Smith, economics associate director at S&P Global Market Intelligence. Smith ‌said that it was hard to predict the ​direction of inflation in the coming months due ​to volatility in global energy prices ​and supply chain uncertainties from the Iran war.