Economics

German Economy Shows Strength as Manufacturing Gauge Improves

  • IHS Markit’s composite PMI eases to 54.8 in Dec. from 55
  • Index signals strong year-end for German firms, Markit says

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Photographer: Krisztian Bocsi/Bloomberg
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Germany’s economy ended 2016 on a strong footing, with a key index suggesting growth accelerated in the fourth quarter.

IHS Markit said its composite Purchasing Managers Index was at 54.8 this month after a reading of 55 in November, capping the economy’s strongest three-month period since the second quarter of 2014. That indicates economic growth picked up from the 0.2 percent pace recorded in the three months through September.