Markit Economics released its retail purchasing managers' index (PMI) for Germany on Thursday. Germany's retail purchasing managers' index (PMI) declined to 49.5 in January from 50.5 in December.

The decline was driven by a fall in buying activity and stock holdings.

"It's a disappointing start to the year for German retailers, as unfavourable weather conditions acted as a drag on sales. Moreover, the headline index has now failed to signal any meaningful growth for three months, with the latest reading the lowest in nearly one-and-a-half year," an economist at Markit, Oliver Kolodseike, said.