The rise in business activity was matched by similar robust increases in new work and employment, with rates of growth accelerating slightly in both cases. Furthermore, firms' confidence towards future prospects rebounded after easing in November and was among the highest seen in the past seven years.

The seasonally adjusted final IHS Markit Germany Services PMI Business Activity Index climbed to 55.8 in December from 54.3 in November, recording its highest reading since the final month of 2015. This latest increase in business activity extended a sequence of growth seen since mid2013, with the average pace of expansion for the year as a whole the best since 2011.