German manufacturing posted a strong performance in February with the best overall improvement in operating conditions since May 2011, according to the latest PMI survey data from IHS Markit and BME. Growth rates for output, new orders, exports and purchasing all accelerated since January, and employment rose sharply. The latest findings also revealed the strongest increase in input prices since May 2011, linked to metals and oil-based materials.

The PMI rose from 56.4 in January to 56.8 in February, the highest since May 2011. The increase in the headline figure reflected the output, new orders and suppliers' delivery times components, while employment and stocks of purchases also made positive overall contributions. The current 27-month sequence of improving manufacturing conditions is the longest observed in over eight-and-a-half years.