German manufacturing data shows strongest growth in two years

The German manufacturing sector has seen production expand at it fastest pace since June 2011.

Markit's purchasing managers' index rose from 50.7 to 51.8, while economists had forecast a rise to 52.0. Nonetheless, a July 2011 high for the sector.

New orders came in at 54.5, and output at 54.8, both strong numbers (any above 50 implies an expansion).

Commenting on the final Markit/BME Germany Manufacturing PMI survey data, Tim Moore, senior economist at Markit and author of the report said:

August’s survey keeps the good new rolling in for the German manufacturing sector, with improvements in domestic sales and a rebound in export demand combining to generate the fastest expansion of output volumes since the middle of 2011

Overall, the latest figures provide a strong indication that manufacturing output will have a positive contribution to German GDP in the third quarter of 2013.