- Tim Moore, senior economist at Markit
Business activity in the Eurozone's largest economy surged more than initially was expected, adding to signs the worst is over and the region's economy will start gaining momentum soon. The report by the data company Markit showed that composite Purchasing Managers' Index climbed to 53.6 in January, up from 50.3 in December, accelerating to its fastest rate of growth in a year. A reading above the 50 threshold signals month-to-month growth in the manufacturing and services industries, which can bolster growth of German economy. Despite the fact the Eurozone economy contracted in the third quarter of 2012, German economy managed to expand by 0.2%, and Thursday's data are adding to signs that Germany will be able to avoid the recession and will continue developing.
"Germany's private sector has kicked back into gear in January, as output rose at a pace that would deliver a swift recovery in gross domestic product from the ground lost during the final quarter of 2012," said Tim Moore, senior economist at Markit.
"The German economy probably experienced the worst growth performance in the fourth quarter since the first quarter of 2009," said Carsten Brzeski, senior economist at ING Group in Brussels.
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