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German manufacturing continues to grow in August

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The Markit Purchasing Managers Index for Germany has shown that the country’s manufacturing sector grew in August at its quickest rate in two years.

Germany’s manufacturing sector, which makes up about a fifth of its economy, recorded a score of 51.8 in the August PMI, which tracks survey data from 500 representative companies.

A score of 50 is the line separating growth and contraction, with a result above indicating growth.

“August’s survey keeps the good new rolling in for the German manufacturing sector, with improvements in  domestic sales and a rebound in export demand combining to generate the fastest expansion of output volumes since the middle of 2011,” said Tim Moore, a senior economist at Markit, in comments reported by Reuters and others.

Markit notes that this is the fourth consecutive month of growth in the German PMI.

“Increased production schedules could not prevent an accumulation of unfinished work for the first time in five months, which should stimulate job creation and investment spending as autumn approaches,” said Moore, who authored the report.

“Overall, the latest figures provide a strong indication that manufacturing output will have a positive contribution to German GDP in the third quarter of 2013.”

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