German factory activity ends 2015 on a high

German factory activity rose in December to its highest level in four months, a survey showed on Monday, suggesting manufacturers in Europe’s largest economy have not been fazed by a slowdown in emerging markets.

Markit’s purchasing managers’ index (PMI) for manufacturing, which accounts for about a fifth of the economy, climbed to 53.2 in December from 52.9 the previous month.

That was slightly above a Reuters consensus forecast of 53.0 and comfortably above the 50 line that separates growth from contraction.

The optimistic December reading concludes a year of steady growth in the sector, with the headline figure above the 50 threshold for the 13th month running.

"New order intakes continued to grow at a healthy rate, with demand for consumer goods particularly strong and exports showing the largest monthly rise since February 2014," said Markit economist Oliver Kolodseike.

Factories may hire extra staff and produce more in the coming months thanks to a healthy rise in new orders and a buildup of backlogs of work, which hit their highest in almost two years.

Input prices fell for the fifth month running, with participants citing lower oil, energy and raw material costs, while factory-gate prices were almost unchanged.

Reuters