Germany's private sector gained momentum in January as services activity grew at the fastest pace in five months amid a slower decline in manufacturing, flash survey results from IHS Markit showed Friday.
The flash composite output index rose more-than-expected to 51.1 in January from 50.2 in December. This was the highest score in five months and above forecast of 50.5.
The services Purchasing Managers' Index hit a 5-month high of 54.2 versus 52.9 in the previous month. The reading was forecast to rise marginally to 53.0.
Although the manufacturing PMI rose to a 11-month high of 45.2 in January from 43.7 a month ago, the reading was well below the neutral 50. Economists had forecast a reading of 44.5.
A number of positive takeaways from January's flash PMI survey suggest the storm clouds over the German economy may be starting to clear, Phil Smith, principal economist at IHS Markit said.