According to the report from IHS Markit, despite improving slightly, growth of Germany’s private sector economy remained subdued at the start of the second quarter of the year, weighed down by an export-led contraction in goods production. The service sector, on the other hand, remained resilient, recording strong growth in both business activity and employment.

The Flash Germany Composite Output Index ticked up from a 69 month low of 51.4 in March to 52.1 in April. That said, the index remained below its long-run average of 53.4.

Growth of service sector business activity was strong in April, having accelerated for the fourth month in a row to the quickest since September last year. Manufacturing output, however, fell markedly and for the third month in a row, albeit with the rate of contraction easing since March.

• Flash Germany Services PMI Activity Index(2) at 55.6 (Mar: 55.4). 7 month high.

• Flash Germany Manufacturing PMI(3) at 44.5 (Mar: 44.1). 2-month high.