February survey data from IHS Markit signalled a recovery in growth momentum in the German service sector. Having weakened to a four-month low at the start of 2017, the rate of expansion in total business activity accelerated and was slightly stronger than the trend shown over 2016 as a whole. Moreover, new business rose at the fastest rate since February 2016 and employment growth was the strongest since June 2011. The latest survey also revealed a further build-up of cost pressures at service providers, linked to salaries and fuel, which led to the sharpest rise in charges since April 2011.

The final Markit Germany Services PMI Business Activity Index rose to 54.4 in February from 53.4 in January.