The IHS Markit Flash Germany Composite Output Index, which is based on around 85% of usual monthly responses, registered a reading of 55.4 in March, down from 57.6 in February. Although remaining solid overall, growth has now softened in each of the past two months after having reached a near seven-year high in January.

Services business activity rose at the slowest pace since last August, while manufacturing output showed the weakest increase in 14 months. This slower expansion in factor output was reflected in a further correction in the IHS Markit Flash Germany Manufacturing PMI, which dipped from 60.6 in February to 58.4 in March, down for the third straight month and its lowest reading since July last year.