German services sector hits fastest growth in over a year

Germany’s services sector expanded at its fastest pace in over a year in November, figures released on Monday showed.

A flash reading of Markit's Germany services activity index showed an increase to 55.6 from 54.5 in October, as the index reached its highest level in 14 months.

The flash manufacturing purchasing managers’ index also climbed to a three-month high of 52.6 from 52.1 in October, surpassing the consensus forecast for a 52.0 reading.

Growth in the services sector flash composite output index also reached a three-month high, as it rose from 54.2 to 54.9, beating expectations for a 54.0 reading, while the manufacturing output index declined from 53.7 to a four-month low of 53.5.

German private sector firms reported strong inflows of new business in November, with the respective pace of expansion the quickest in two years.

Mirroring the trend for output, however, stronger growth in the service sector contrasted with a slight slowdown at goods producers, while companies added to their payrolls at the fastest pace since December 2011.

“PMI data available for the fourth quarter so far point to further modest, albeit unspectacular growth, of the German economy,” said Markit’s economist Oliver Kolodseike.