The German services sector has picked up in July, and the expansion is accelerating according to Markit.
However, that rise is much less than analysts had forecast, with purchasing manager's index jumping from 50.4 to 52.5.
Economists had predicted a rise to 52.5.
Commenting on the survey data, Tim Moore, senior economist at Markit and author of the report said:
Germany’s economy has started the third quarter on a positive footing, driven by stronger growth in both manufacturing and services. A rebound in new business intakes helped support private sector job creation during July.
While the overall growth profile remains subdued in comparison to those seen in 2010 and 2011, the change in direction for new order volumes provides a strong signal that Germany’s output performance can shift back though the gears during the second half of 2013.