Markit's Germany Manufacturing Purchasing Managers Index (PMI) was at a 35-month high of 55.6 points in December last year, up from 54.3 points in November.
Underpinning the overall improvement in operating conditions were marked expansions of output and new work. New business increased for the twenty-fifth consecutive month. Stronger client demand persuaded German manufacturers to raise their output at a quicker pace. The latest rise in production was the sharpest since July.
“German manufacturers finished 2016 on a high note, with business conditions improving to the greatest extent since January 2014. Strong growth in December meant that goods producers enjoyed their best quarter in nearly three years during Q4. The manufacturing sector is therefore likely to help overall GDP growth accelerate from the modest 0.2 percent pace seen in the third quarter,” stated Philip Leake, economist at Markit.