According to data released today by Markit, German PMI Manufacturing expanded for the first time since September 2011, growing to 51 points in January 2012, in comparison with 48.4 points in December 2011. This result is slightly above expectations of 50.9 points.

Mr Tim Moore senior economist at Markit said that "January 2012 saw a reversal of the recent downturn in German manufacturing production, and the rate of output expansion was the highest since the middle of last year. This in turn supported a solid rise in manufacturing employment numbers, suggesting renewed confidence about the longer term business outlook. However, subdued export demand remains a drag on the sector, with a drop in new work from abroad for the seventh month running contributing to a moderate overall fall in incoming orders at the start of 2012."

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