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German business activity expanded at a faster-than-expected pace in February, supported by a rebound in manufacturing and stronger momentum in the services sector, according to flash PMI data released on Friday.
The German Composite Purchasing Managers’ Index (PMI) rose to 53.1 in February, exceeding market expectations of 52.2 and improving from 52.1 in January. A reading above the 50.0 mark signals expansion in overall private-sector activity.
The upside surprise was driven by a notable improvement in manufacturing, with the Manufacturing PMI climbing to 50.7 from 49.1 in January. The move marked a return to expansion territory for the factory sector after months of contraction, offering a tentative sign of stabilization in Germany’s long-struggling industrial base.
Services activity also showed unexpected strength. The Services PMI accelerated to 53.4 in February from 52.4 in January, defying forecasts that had pointed to a slight easing to 52.2. The faster pace of growth in services provided a significant boost to the headline composite index.
Together, the data suggest that Germany’s economy is gaining some traction early in the year, with improving demand conditions across both manufacturing and services helping to lift overall business output beyond expectations.
