Germany's Manufacturing Sector Is Having Its Best Month In Over 2 Years

The country's flash manufacturing PMI jumped to a 30-month high of 54.2 from 52.7 in November. The manufacturing output index climbed to a 31-month high of 57.5 from 54.9.

Due to decelerating growth in services activity, the composite output index slipped to 55.2 from 55.4.

"Germany's private sector expanded for the eighth month running during December, according to the latest "flash" PMI data," said Markit economist Tim Moore. "Manufacturing achieved a particularly strong end to the year, with improving new order flows and renewed job creation also providing encouragement that the sector has gained momentum since the autumn.

"Growth of new work was the fastest for over two-and-a-half years while stocks of finished goods were depleted at an accelerated pace. As a result, inventory-to-order ratios will be more supportive of output expansion in the months ahead. Meanwhile, the strong accumulation of back logs in December provides a further positive signal for production trends into next year."