Germany´s economy accelerated into the end of the year

Economic activity in the euro area´s largest economy accelerated into the end of the year on the back of job market gains, the results of two surveys revealed.

Markit´s composite purchasing managers´ index for manufacturing and service sector activity in Germany slipped to a reading of 54.9 in December from 55.2 in the month before.

That was a tad below economists´ median forecast for a reading of 55.0.

A gauge of new business placed with German private sector firms was one of the strongest seen over the past four-and-a-half years. Anecdotal evidence pointed to better demand from both domestic and foreign markets.

Export orders at manufacturers improved for a fifth consecutive month, Markit said.

In parallel, a PMI which specifically tracks the services sector dropped to a reading of 55.4 (consensus: 55.5) - a two-month low- from 55.6 in the month before.

"Germany´s private sector companies ended the fourth quarter on a solid footing, with all key barometres of corporate health showing further improvements.

"The labour market was a particularly bright spot, according to December´s 'flash' PMI results. The rate of jobs growth reached a four-year higg, signaling greater confidence about upcoming workloads," the survey compiler said.

Following Wednesday´s figures, the average reading for the composite output index was pointing to an acceleration in the rate of growth of gross domestic product from the 0.3% pace seen in the third quarter.