Markit Economics released its retail purchasing managers' index (PMI) for Germany on Wednesday. Germany's retail PMI climbed to 54.1 in March from 52.5 in February. It was the highest level since August 2015.

The increase was driven by rises in buying activity, inventories and employment.

"German retailers reported further growth of sales during March, thereby signalling that household demand continued to strengthen at the end of the first quarter," an economist at Markit, Oliver Kolodseike, said.