Germany's private sector expanded at its fastest rate in more than 1-1/2 years in January, a survey showed on Tuesday, suggesting Europe's largest economy is on the road to recovery after shrinking in the fourth quarter of 2012.
Markit's composite Purchasing Managers' Index (PMI) which measures activity in both manufacturing and services, climbed to 54.4 in January, its highest level since June 2011, from 50.3 the previous month.
"January's survey underscores the striking degree to which momentum in the German economy has shifted from contraction to expansion at the turn of the year," said Tim Moore, senior economist at Markit.
Europe's economic powerhouse expanded robustly during the first two years of the euro zone crisis but growth slowed to just 0.7 percent last year - and shrank by 0.5 percent in the fourth quarter, a preliminary estimate showed.