German Manufacturing Strengthens as Economy Shifts Up a Gear

German manufacturing growth unexpectedly accelerated to the fastest pace in more than a year, pointing to building momentum in the euro-area’s largest economy.

Markit Economics said Friday that its factory Purchasing Managers’ Index advanced to 53.2 in August from 51.8 in July. That’s the highest since April 2014 and above the 50 mark that divides expansion from contraction. It also beat the median estimate of 51.6 in a Bloomberg survey of economists. A services gauge slipped, though a composite measure of both industries rose to a four-month high.