Wednesday, June 18, 2014

German business activity reaches near 3-year high

German business activity grew at the fastest rate in almost three years in February, suggesting Europe's biggest and strongest economy continued to accelerate during the first quarter of the year.

The survey results from data provider Markit on Thursday followed a weak report on French business activity during the same month, and is a new sign that Germany is outpacing other euro nations as the bloc's economy stages a fragile recovery from its fiscal crisis.

Markit's composite purchasing managers' index, a monthly gauge of activity across the German manufacturing and services sectors, rose to 56.1 in February, a 32-month high, from 55.5 in January.

A reading above 50 indicates month-to-month expansion in activity. France's equivalent gauge showed activity shrinking.

"The recovery in the euro zone's largest economy is looking more and more sustainable, underpinned by the strongest rate of job creation in just over two years," said Oliver Kolodseike, economist at Markit.

Growth accelerated in Germany's services sector, but ebbed in manufacturing.

Germany's economy grew 0.4% during the final three months of 2013, picking up slightly from the previous quarter. The euro-zone economy as a whole grew 0.3%.

Write to Alex Brittain at alex.brittain@wsj.com

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