Euro-Zone Private Sector Picks Up as Germany Fuels Recovery

An employee works on the production line for a Puma combat vehicle. 

Photographer: Fabian Bimmer/AFP/Getty Images

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Business activity in the euro area reached its highest level in seven months as manufacturers recovered more than expected ahead of a massive increase in German spending.

The Composite Purchasing Managers’ Index by S&P Global rose slightly to 50.4, further above the 50 threshold separating expansion from contraction. Analysts had predicted a slightly higher reading of 50.7.