Markit Economics released construction purchasing managers' index (PMI) for Germany on Tuesday. Germany's construction purchasing managers' index (PMI) climbed to 52.4 in September from 50.3 in August.

A reading above 50 indicates expansion in the sector.

The index was driven by a rise in work on residential building projects.

Employment and purchasing activity also rose in September.

"Output rose at the strongest rate in six months, largely a result of sustained growth in residential building activity. Encouragingly, firms also reported a pick-up in purchasing activity, suggesting that companies are likely to remain busy in coming months," an economist at Markit, Oliver Kolodseike, said.